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Bankruptcy filing for rapper Lil' Kim

Minnesota fans of rapper Lil' Kim may have heard that she is having financial problems. Lil' Kim filed for Chapter 13 bankruptcy just days before foreclosure on her mansion in New Jersey.

She reportedly owes over $1.47 million in taxes and over $4 million in various debts. She is more than $650,000 behind on her mortgage on the $2.3 million home. The house will be auctioned at the end of June.

She lists her income as dropping to $398,000 in 2017 from $823,659 in 2016. Her monthly income is listed as $18,286 with more than $12,000 going toward expenses. Lil' Kim has more than $2.5 million in assets, which includes two vehicles, one of them worth $52,600, as well as $25,000 worth of jewelry. Among her monthly expenses are more than $2,000 for staff and over $2,000 for wardrobe, over $10,000 for travel and entertainment and a mortgage of more than $6,000.

A person who is struggling with debt might want to talk to an attorney about whether filing Chapter 7 or Chapter 13 bankruptcy would be appropriate. A person's eligibility is based in part on income. A person may be allowed to exempt some necessary assets in a Chapter 7 bankruptcy, and most debts can be discharged. In a Chapter 13 bankruptcy, a person works out a payment plan with creditors that lasts three to five years. It may be possible to keep some assets, such as a home, in a Chapter 13 bankruptcy. In general, neither type of bankruptcy allows a person to discharge tax debt, student loan debt or debts for spousal or child support. However, bankruptcy may free up income to pay off those debts as well.

Source: The Grapevine, "Lil' Kim Files for Bankruptcy; New Jersey Mansion Being Auctioned Off," Angela Helm, 6/9/2018

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