DMX’s Bankruptcy Filing Is A Mess
DMX's bankruptcy claim has landed him back in the news again, with the rapper taking fire from the Justice Department via allegations that he is purposely delaying proceedings with inconstancies in his paperwork. DMX also apparently missed a meeting with creditors last month, another blow to his credibility in the eyes of the U.S. government.
“The debtor’s actions have eroded the confidence of the Office of the United States Trustee and others that the debtor will be candid in the disclosure of his assets,” said U.S. Trustee Tracy Hope Davis, who works on bankruptcy cases in New York. Davis requested that X's Chapter 11 filing—which gives him the opportunity to rearrange his assets—be converted to Chapter 7 liquidation, which would force him to sell his assets in order to pay his debts to his creditors.
Some of the papers that X apparently filed listed his monthly income as $5,000 or $1,667 in different places, and marked that he had zero dollars worth of clothing despite claiming he spends $1,000 on clothes each month. The Justice Department also brought up a previous bankruptcy claim by X in 2009, in which he was found to have "unreasonably delayed" proceedings, which hurt his creditors.
"DMX did not receive any money that is mentioned in this lawsuit," said DMX representative Domenick Nati in a statement provided to XXL. "Any financial transaction in this case took place solely between the booking agency and DMX's former manager. DMX did not personally review, witness, or agree to the terms that are mentioned in this case."