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Rapper Young Buck's Chapter 11 converts to Chapter 7

The creditors of Young Buck, whose birth name is David Darnell Brown, are due in court next month for a meeting. After that meeting, more aspects of the rappers bankruptcy should be hashed out.

Originally, Young Buck had filed for Chapter 11 bankruptcy. However, after a trustee spent months reviewing the rapper's financial situation, it was determined that reorganizing debt simply would not work in his situation. Instead, a judge ordered that the Chapter 11 reorganization be switched to a Chapter 7 bankruptcy.

Under this Chapter 7, a number of the rapper's assets will be sold off in order to pay back creditors. However, he can ask the courts to not sell certain items -- therefore declaring them exempt -- and may also request to have some debts discharged.

When looking at what happened to turn the Chapter 11 into a Chapter 7, the biggest issue was that an agreement could not be reached between Young Buck, and his former mentor, Curtis Jackson, who's also known as 50 Cent.

The issue was that Young Buck wanted to be able to modify a recording and distribution agreement with the Universal Music Group; and 50 Cent's label G-Unit Records. The plan was that he would use future earnings in order to pay back creditors. But, since he was unable to modify the terms of his recording agreement, that plan fell through.

The future of how this bankruptcy will turn out is still rather unknown, as Young Buck had posted some conflicting claims on Twitter, first claiming that he is making a lot of money and does not owe anyone, but then posting another tweet about the fact that money does not necessarily make a person real, and that it's more important to judge the person.

Source: The Wall Street Journal, "Bankruptcy Judge Orders Young Buck Into Liquidation," Jacqueline Palank, Dec. 22, 2011

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