Months ago, a rapper named Young Buck (whose real name is David Brown) filed for bankruptcy protection. Young Buck frequently works with the rapper 50 Cent, and has a recording contract with 50 Cent's record company G-Unit Records. When Young Buck filed for bankruptcy, he filed under Chapter 11. Broadly speaking, Chapter 11 is for businesses that want to reorganize their debt, stay in operation, and eventually emerge from bankruptcy and continue on as before. Individuals who desire bankruptcy reorganization usually file under Chapter 13, but Young Buck's particular debts and business dealings may have made Chapter 11 a more logical choice for him.

The more traditional form of bankruptcy for individuals is Chapter 7, where the debtor's property (unless it is exempt) is sold, the creditors are paid with the proceeds, and any remaining debts are discharged. The discharge means that the debts never have to be paid.

San Diego Chapter 7 bankrutpcy attorneys noted from recent news reports, though, that the trustee working with Young Buck is now pessimistic about the rapper's chances of emerging from bankruptcy reorganization.

Young Buck's plan involved a modification of his recording contract with G-Unit Records. With the modification, he could reorganize his debts. Without it, the reorganization was almost certain to fail. G-Unit declined to modify the recording agreement, so the trustee has said that it is likely Young Buck will have to convert his petition to a Chapter 7 bankruptcy.

It remains to be seen whether an alternative plan might be conceived to allow the rapper to continue with a bankruptcy reorganization plan.

Source: Bankruptcy Beat "Young Buck Faces Liquidation" Oct. 10, 2011