The rapper, who rose to fame in Detroit as a protege of rapper Eminem, claimed in court papers that his debts and assets ranged between $10 million and $50 million.
A more detailed filing will be forthcoming, but the rapper’s net worth is far less than the $150 million that many publications, notably Forbes claimed he was worth.
Beside the court judgment, he appears to be facing other financial difficulties. He put his SMS Promotions boxing promotion company into bankruptcy three months ago.
In both cases the filings were under Chapter 11 of the bankruptcy code in U.S. Bankruptcy Court in Hartford under his real name Curtis James Jackson III.
Chapter 11 allows a business to reorganize and in some cases discharge its debts and continue in operation. The alternative is Chapter 7, which requires a dissolution of the company to pay off creditors.
Forbes, which routinely “guesstimates” the net worth of entertainers, claimed 50 Cent had a net worth of $155 million, naming him the fifth wealthiest rap artist in the country. The magazine has been criticized in the past for grossly inflating celebrity wealth.
Congress years ago substantially tightened bankruptcy laws to maker it harder to discharge debts. But under the filing, 50 Cent could possibly force his creditors to accept pennies on the dollar. They would have to sign off on a bankruptcy plan, however.
The $5 million sex tape judgement is only a partial award. The plaintiff filed court papers on Monday (July 13) to petition for punitive damages, which could also range in the millions of dollars, according to Reuters.
She could file an objection in the bankruptcy proceeding to any effort to reduce her award as well, according to legal sources.
In the sex tape trial, Jackson did not appear in the tape, which featured the woman with her boyfriend. But he did add commentary and post it online without her permission.
William Brewer, who represents Jackson, said he plans to “continue his involvement with various business interests and continue his work as an entertainer.”
He’ll appear in a new boxing movie “Southpaw,” starring Jake Gyllenhaal, which hits theaters next week.