Rapper 50 Cent filed for bankruptcy last week, but that may not mean what many think it means.
The Grammy-winning artist and serial entrepreneur filed under what is called Chapter 11 bankruptcy which, as Mashable reports, is a strategy commonly used by big businesses that allows them to retain control of their assets.
It barely took any time for a deluge of jokes to flood social media (including a self-deprecating one by the man himself), with most of them centered around the fact that 50 Cent — born Curtis James Jackson III — has no money left.
However, the filing “allows Mr. Jackson to reorganize his financial affairs as he addresses various professional liabilities and takes steps to position the future of his various business interests,” according to a statement emailed to Mashable by his legal team.
“In Chapter 11 in particular, one usually has many assets — in fact, Chapter 11 is used to protect those assets while repaying creditors what they would get if the assets were liquidated,” veteran California bankruptcy attorney Mark Markus told Mashable. “So those who file Chapter 11 are definitely not broke.
“What they are is insolvent, which means unable to pay all one’s debts as they become due, and that is precisely what the bankruptcy laws are designed to address.”