As mentioned in my prior post, debtors in bankruptcy are required to complete and file Schedules which list all of their assets and all of their debts, along with a statement of financial affairs ("SOFA") listing other important financial information, all under penalty of perjury. Curtis James Jackson, III ("50 Cent" or "Debtor") filed his Schedules and SOFA yesterday (Docket Entries 53, 54, 55, and 56). These filings are available through the Court's PACER website.
According to the Debtor's Schedules, he has assets with a value of $24,823,899.18 including: $9,286,000.00 in real property, with mortgages of only $1,021,622.10; checking and/or brokerage accounts with a value of $10,554,486.13; stock and interest in businesses with a book value of $4,412,712.24; automobiles and other vehicles with a value of $500,618.00; and, household goods and furnishings, wearing apparel, furs and jewelry – in an amount to be determined by appraisal.
The Debtor's Schedules also reveal that he has debts of $32,509,549.91 including priority and non-priority, unsecured claims by: Sleek Audio, LLC related to an arbitration award in the amount of $18,428,257.00 (disputed); Lastonia Leviston ("Leviston") related to a jury award for $7,000,000.00 (disputed); Suntrust Bank for a guaranty in the amount of $4,000,000.00; various law firms for legal fees over $980,000.00 (some disputed); American Express for credit card debt in the amount of $64,909.04; and Daphne Narvaez for child support payments, until child reaches age of 18 years old, in the amount of $832,600.00.
The Debtor has reported that he has an estimated monthly income of $184,969.58 and estimated monthly expenses are $108,000.
Leviston has filed a motion seeking to take the Rule 2004 Examination of the Debtor (Docket Entry 45) and the hearing on that motion is currently scheduled for August 26th. Federal Rule of Bankruptcy Procedure 2004 provides that the court may order the examination of a debtor (or any entity) on motion of any party in interest.
Often referred to as a fishing expedition, a Rule 2004 Examination ("Deposition") is deposition, that allows the party in interest to ask questions about "the acts, conduct, or property or to the liabilities and financial condition of the debtor, or to any matter which may affect the administration of the debtor's estate, or to the debtor's right to a discharge," under oath. The Deposition typically lasts a couple of hours but, could be longer and continue for days depending on the complexity of a debtor's financial affairs. The answers to questions asked at the Deposition can be used for many purposes, including (but not limited to): assessing a debtor's financial condition and ability to reorganize his debts; locating assets that may have been transferred by a debtor and subject to recovery; and/or obtaining evidence for prosecution of an adversary proceeding objecting to discharge or dischargeability of certain debts.
Will there be a fishing expedition for 50 Cent and will the discovery be bountiful for Leviston?
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