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.