Anyone can run into financial difficulties that lead to the consideration of bankruptcy. A Tennessee resident filing for bankruptcy might find it helpful to understand some issues that can crop up during the process that can undermine one’s case. Rapper 50 Cent recently faced backlash after filing for bankruptcy because of social media posts that suggested that his financial difficulties were not as severe as alleged.
In the rapper’s case, he sought debt relief through bankruptcy after a $7 million judgment was entered against him in a court case. The goal of the bankruptcy was to eradicate this and some business debts. However, the validity of the case was called into question because social media images were posted in which 50 Cent apparently displayed large sums of cash. The court addressed its concerns about the matter, and in his filing, the rapper noted that appearing in pictures with cash or luxury items did not entail ownership of the materials in question.
Those contemplating bankruptcy should understand that truthfulness is essential when dealing with the court. Issues such as incorrectly stating one’s assets could affect the outcome. Procedural errors account for the majority of dismissals. A dismissal can be made with prejudice because of issues such as misleading the court. Dismissal without prejudice is likely if procedural errors are at issue. In a case involving prejudice, a debtor could be required to wait for a period of time before attempting to file again. In a case dismissed without prejudice, however, a debtor could refile immediately.
An individual preparing for a possible bankruptcy case needs to gather all relevant financial information before filing. A lawyer may help in evaluating this information to determine if any important documentation is missing. Additionally, a lawyer may provide insight about alternatives to bankruptcy.