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DMX’s bankruptcy filing shows major child support debt Atlanta, GA

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DMX’s bankruptcy filing shows major child support debt

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One concern that many bankruptcy filers have in Georgia is whether bankruptcy will affect their child support obligations. While filing for bankruptcy can allow a person to eliminate or resolve many debts, child support is among the few debts that are generally not dischargeable.

However, the relationship between bankruptcy and child support is very complicated, so those who have questions about this should discuss them with their bankruptcy attorneys.

Some Atlanta residents may have heard that rapper DMX has recently filed for Chapter 11 bankruptcy.

His bankruptcy filing lists $1 million to $10 million in liabilities, and a significant portion of this is child support. According to the Los Angeles Times, the rapper owes about $1.24 million in child support.

His filing only indicated $50,000 in assets.

The successful rapper who has released seven studio albums said through his publicist that poor financial management has led to the unsustainable amount of debt.

It remains to be seen how he hopes to handle his child support debt in this Chapter 11 filing. Part of the problem, according to his publicist, is that he is currently ineligible for a passport because a person cannot obtain a U.S. passport if he or she owes $2,500 or more in child support.

DMX needs a passport in order to tour and earn an income, the publicist has stated.

Chapter 11 bankruptcy is a fairly complicated bankruptcy process that is generally used by businesses to reorganize heavy debt burdens. However, in some instances consumers do file for this type of bankruptcy, which involves the filer proposing a plan to earn an income post-bankruptcy. While Chapter 11 bankruptcy may have some advantages, in many cases those with higher incomes may be eligible for the simpler process of Chapter 7. 

Source: Los Angeles Times, “Rapper DMX files for bankruptcy protection to ‘reorganize’ finances,” Nardine Saad, July 31, 2013

Posted on behalf of Jamie L. Gingold, PC

195 14th Street NE #1604
Atlanta, GA 30309

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