Texas fans of rapper 50 Cent may have heard that the entertainer filed for bankruptcy. He had faced a lawsuit from a woman involving a sex tape and had been ordered to pay her $7 million. With this debt on top of some losses in business, 50 Cent turned to bankruptcy.
However, not long after, the woman to whom he owed $7 million pointed out to the bankruptcy court that he had posted a photo on Instagram in which he was sitting with a stack of cash. This created concern that he had failed to disclose his assets.
His response to the query was that being photographed with an item did not necessarily mean that item was in his possession. Ultimately, the parties made an agreement, but the incident raised the issue of how important it is to be careful about endangering a bankruptcy case because this could lead to its dismissal.
A dismissal in a bankruptcy case is either without or with prejudice. The former refers to honest errors such as a mistake in paperwork. If a dismissal without prejudice occurs, the person can refile immediately and get debt relief. However, in the other case, it is not possible to immediately refile. A person might even be suspected of bankruptcy fraud.
An attorney might be able to give a client tips such as these. In addition, filing for bankruptcy is a complex and exacting process, and any errors can delay that process. As a result, working with an attorney may be helpful. An attorney might also be current on bankruptcy law such as changes in forms and documentation and may therefore be able assist with any such problems that arise along the way.