When it comes to individual and business finances, the two often mix, especially for the self-employed in bankruptcy. Such is the case for celebrity rapper Young Buck who was in a Chapter 13 bankruptcy paying $12,500 a month for 60 months. The bankruptcy court had ordered that the rapper’s company, Cashville, dock his pay over the course of the Chapter 13 bankruptcy repayment period; but the Rapper still missed payments. After missing seven months of payments on his BMW, the vehicle financer moved to have the automatic stay lifted so that they could repossess the vehicle. After recognizing that the debtor was not keeping to plan payments, the bankruptcy trustee decided to convert the case to a Chapter 11 bankruptcy which was initially challenged by creditors. But after the bankruptcy trustee assured the creditors that an appointed trustee would oversee the administration of the assets, the creditors agreed to the conversion. Usually in Chapter 11 bankruptcy the debtor is allowed to manage their own assets but because Young Buck had demonstrated that he was either unable or unwilling to effectively pay his Chapter 13 bankruptcy as agreed, the bankruptcy court found that it would be in the best interests of the bankruptcy estate and the creditors to relieve the debtor of managing his own affairs. But even as his case is going through a conversion to Chapter 11 bankruptcy, some creditors still want to repossess property. A hearing will be held Jan. 31 on Wells Fargo’s request to foreclose on Brown’s 2002 BMW X5. The bank claims Brown has missed about seven months’ worth of payments and owes more than $5,000. In a response, Brown argued against the seizure by claiming that there is equity in the vehicle and that it is used to take his children to school and other activities.If the debtor can repay the $5,000 immediately he may be allowed to keep his vehicle. Otherwise, missed payments on his previous Chapter 13 bankruptcy is legitimate grounds for lifting the automatic stay.
(source: http://www.tennessean.com/article/20110115/NEWS03/101150338/1017/NEWS01 )
