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Rapper Lil' Kim files for Chapter 13 bankruptcy

Virginia fans of rapper Lil' Kim might have heard that she recently filed for Chapter 13 bankruptcy. She did so just before her home in New Jersey, a gated mansion worth $2.3 million, was foreclosed upon. The house is set to be auctioned on June 29.

The rapper owes more than $1.4 million in taxes and more than $4 million in various debts. She is also behind on her mortgage payments by $664,474. She lists her monthly income as $18,286 and says that in 2017, her income dropped to under $400,000 from more than $800,000 in 2016.

Assets listed include a Bentley at more than $52,000, jewelry at $25,000, and another car worth $4,200. She listed her monthly expenses as $10,410 for travel and entertainment, $2,317 for staff and $6,610 for her mortgage.

When a person is struggling with debt, bankruptcy may be an option. Although Lil' Kim's home is being auctioned, in some cases, a Chapter 13 bankruptcy may allow people to keep some assets, including a home, if they are able to create a payment plan that creditors agree to. In a Chapter 13 bankruptcy, a debtor repays creditors over a period of three to five years. While bankruptcy does cause a person's credit score to drop, it is possible to rebuild it. In some cases, a person might even be able to get some financing while still in Chapter 13 bankruptcy with approval from the bankruptcy trustee and creditors. An attorney may be able to assist a person who is interested in filing.

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