Most people in California have a certain idea about the type of person who needs bankruptcy protection. The image of an individual who constantly spends well outside of his or her income usually comes to mind, even though this is far from the standard. In many instances, people find themselves in need of bankruptcy due to unexpected bills, financial emergencies or a sudden and unexpected loss in income. For rapper Lil' Kim, it was the latter that drove her to file for Chapter 13 bankruptcy.
Lil' Kim -- who was born Kimberly Jones -- filed for bankruptcy shortly after her home was foreclosed on. The house is currently set to go to auction in late June 2018. She was apparently more than $664,000 behind on her mortgage for the multi-million-dollar home. Her filing also revealed that she owes the IRS $1.5 million for back taxes and she's about $200,000 in debt for legal fees.
So how did a popular rapper find herself entrenched in debt that she is unable to repay? Far from overspending, it appears that a drastic drop in income fueled her current financial troubles. In 2016, she earned $823,659. In 2017, she earned less than half of that at about $398,000.
Virtually no one in California expects their income to be halved, but job loss, demotion and other external factors can make this a reality for anyone. This can make repaying bills difficult, and missed payments often mount until they reach an impossible height. Chapter 13 bankruptcy can ease this burden on individuals by organizing their debt into a straightforward repayment plan, at the end of which their remaining unsecured debt will be discharged.