• 10
  • September
    2010

Nashville area rap star Young Buck recently filed for Chapter 13 bankruptcy a few days after the IRS raided his home in Hendersonville seizing jewelry, furniture, recording equipment and music awards. According to news reports, the Internal Revenue Service claims Young Buck, whose real name is David Darnell Brown, owes more than $300,000 in back taxes, including interest and penalties.

A Chapter 13 bankruptcy generally involves the filing of a debt reorganization plan to allow the filing individual to pay back creditors over the course of three-to-five years. The plan submitted by Brown reportedly proposes that his record label, Cashville Records, garnish his pay a total of $12,500 per month for a total of 60 months in order to pay back creditors.

According to the bankruptcy filing, Brown currently earns about $19,000 a month. Over the course of the five-year plan, he will repay $750,000 to creditors including the IRS as well as the state of New York, American Home Mortgage Service, and Wells Fargo Auto Finance. Under the proposed bankruptcy plan, Brown will be able to keep his additional income and any additional royalty payments he receives.

Chapter 13 bankruptcy is often used by individuals with significant debts whom also have high incomes or own significant assets and would not pass the means test required to file a Chapter 7 bankruptcy. Chapter 13 generally allows people to keep their home, cars, and other assets provided they can keep current on those debts under the debt repayment plan.

If you are experiencing financial difficulties, be aware that bankruptcy is a process that can work in many situations, you don't have to be completely broke or have no income in order to file. If you have questions about bankruptcy options, you should contact an attorney to see if a bankruptcy filing may be in your best interests.

Related Resources:

Young Buck files for bankruptcy (The Tennessean)