Tag Archives: bankruptcy

dmx

DMX Bankruptcy Fiasco: Rapper Ordered to Pay $244,000 Over Botched Comeback Tour

Pay attention, kids. This is what happens when you screw up your bankruptcy: your creditors hunt you down in court with a vengeance and nail you for $244,000 that you pretty much definitely don’t have. Case in point, DMX. Poor, poor DMX.

According to new court documents, DMX was just ordered to pay the quarter-million dollar sum to a booking agency called Heavy Rotation, after the company sued the rapper in 2012 for torpedoing his own highly-anticipated international comeback tour.

According to HR’s lawsuit, DMX sabotaged the tour with his myriad legal problems (most notably, a passport lien stemming from unpaid child support). HR claimed it coughed up nearly $100,000 to help X deal with his issues, all so he could perform on the tour, but DMX continued to cause problems. Worst of all, DMX couldn’t get the lien lifted on his passport, so he was stuck in the U.S.

HR claimed it was subsequently forced to cancel the entire tour it had planned, a decision that cost the company $749,285, so it sued DMX for the full amount.

DMX then did what any broke person would do in that situation, he filed for bankruptcy last July. The HR lawsuit was placed on hold as a result. But not for long.

The judge in DMX’s bankruptcy eventually dismissed the rapper’s filing at the request of U.S. Trustee Tracy Hope Davis, citing legal noncompliance. Davis’ office accused Simmons of “obvious inconsistencies regarding his income and assets, rendering it impossible to ascertain his financial affairs.” Translation: DMX botched his paperwork.

HR didn’t miss a beat, pouncing on DMX as soon as the coast was clear. DMX failed to respond to HR’s renewed legal overtures, so the judge finally issued a default judgment against the rapper earlier this month for $244,325.60. And all of it could have been avoided if he just filed for bankruptcy correctly.

And that’s why you hire good lawyers, kids.

The irony of ironies: DMX is now touring internationally.

oksana

Mel Gibson’s Ex-Girlfriend Oksana Grigorieva Sued for Fraud By Former Lawyers

Mel Gibson‘s ex-girlfriend Oksana Grigorieva maliciously defrauded her former attorneys out of $13,781, according to new legal documents, and now the attorneys are asking Grigorieva’s bankruptcy judge to make sure she remains stuck with the debt.

Keith A. Fink & Associates filed the documents in Grigorieva’s ongoing bankruptcy case, asking the judge to exempt the debt from discharge on grounds Grigorieva racked up the bill by lying to them.

KAF&A claims Grigorieva, who mothered Gibson’s baby daughter Lucia, struck a retainer agreement with the firm in 2012. Under the agreement, Fink & Co. says Grigorieva promised to pay the lawyers $450-$650/hour for their work.

KAF&A claims it did its job and dutifully sent Grigorieva invoices for months after their deal. Grigorieva repeatedly promised to pay them, LAF&A alleges, but ultimately never coughed up a dime.

KAF&A is now convinced Grigorieva never had any intention to pay her legal bills, despite promising over and over to do so. KAF&A claims Grigorieva’s empty promises were made “with malice, fraud and/or oppression, and reckless disregard of KAF&A’s rights.”

As a result, the firm believes its entitled to keep its claim against Grigorieva, despite her bankruptcy, until she’s finally able to pay it. KAF&A wants a judge to declare the debt “non-dischargeable.” Alternatively, the judge in Grigorieva’s bankruptcy case could decide to wipe the debt clean, in which case KAF&A would be out of luck.

Grigorieva filed for Chapter 13 bankruptcy in California in February.