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After Lil’ Kim filed for Chapter 13 bankruptcy last month, a new report says the filing may not even go through.
News of the rapper’s filing emerged earlier in June, with TMZ reporting the star was $4 million in debt. Documents revealed the MC owes $2 million on a New Jersey home loan and $1.8 million in back taxes plus $186,000 in legal fees.
Kim offered to pay $5,5000 monthly to a creditor to handle her financial woes. And while a hearing is scheduled for July, a new report says there may be no chance for her to get the bankruptcy.
Since the rapper’s secured and unsecured debts are each more than $2 million, the mother of one — whose real name is Kimberly Denise Jones — is ineligible for Chapter 13 bankruptcy. That plan enables individuals with regular income to create a plan to repay all or most of their debt. The individual, known as a debtor, proposes a repayment plan in installments that they’ll make to creditors over the course of three to five years. Kim’s plan proposed a 60-month plan, which equates to five years.
But the objection states Kim should attempt to file bankruptcy under a different code.
“The Chapter 13 Standing Trustee objects to Kimberly Jones’s Request for Loss Mitigation. Based upon Ms. Jones’s own schedules, she is clearly ineligible to be a Chapter 13 Debtor under 11 USC 109(e) with secured and unsecured debt each exceeding $2 million. Since Ms. Jones is not eligible to be a Chapter 13 Debtor, she should not be afforded the benefit of the Court’s Loss Mitigation Program in connection with this Chapter 13 Case. Once Ms. Jones coverts this case to a proper Chapter of the Bankruptcy Code, then she can renew her application for loss mitigation at that time if appropriate.”
When news of Kim’s bankruptcy first broke — which followed an April CNBC report that her home was being auctioned off with a starting bid of $100 — she went live on Instagram during daughter Royal Reign’s birthday party saying in part, “when you are a child of God, you can’t be touched boo! It ain’t going to happen.”
https://www.youtube.com/watch?v=qT2Repojuro
