Bankruptcy For Rapper DMX

When someone can’t get a passport due to child support arrears, bankruptcy may be an option. Just ask rapper DMX.

This summer rapper DMX filed for Chapter 11 bankruptcy because his child support arrearage exceeded $2,500, and the State Department will NOT issue passports for people who owe more than that amount.

Plenty of famous folk go broke, jut like the rest of us.  Actor Stephen Baldwin, Gary Busey and others have been the subject of posts on this site for their bankruptcy filings.

Not infrequently, the celebrity was still making plenty of bucks, but his/her manager/accountant had not been paying the bills.  Usually, siphoning the money to their own use.

Why Did DMX File Bankruptcy?

A Victim Of Poor Management

“Poor financial management by prior representation have caused him to be ineligible to retain a passport.”

I mean, there is bad management, and there is, BAD MANAGEMENT.

His Chapter 11 bankruptcy filing shows 1.24 million in back child support.

Hopefully, he can earn more than that on his overseas tour, now that he can get a passport.

Child support is NOT dischargeable in bankruptcy, so it still has to be paid.  But the automatic stay allows him to get the passport.

Filing bankruptcy was just another event in a bad week for Mr. DMX, as he was arrested for drunk driving just a few days earlier.

No license and no seat belt as well, and, the world being what it is, you can see video of the arrest at the linked to story.

No accident, which is good, as damages you inflict while drunk driving are NOT DISCHARGEABLE in bankruptcy.

Usually we hear of big companies, like GM and Chrysler, filing

Chapter 11 bankruptcy, but individuals can file too.

In fact, if you owe more than a certain amount of debt, you CANNOT file Chapter 13 payment plan bankruptcy, and so, you would have to file Chapter 11 to repay the debts.

Being that the vast majority of his debt is child support that he has to pay anyway, looks like DMX made the right move.

Also the right move to get new management.

(image credit DMX site)