DMX’s bankruptcy case may be in jeopardy because of X faulty financial records.
U.S. Trustee Tracy Hope Davis, a Justice Department official who supervises bankruptcy cases filed in New York, recently urged a judge to convert the rapper’s Chapter 11 case to a Chapter 7 liquidation, that would force DMX to sell off his assets to repay creditors or disqualify the rapper from bankruptcy altogether. DMX filed for Chapter 11 protection, which allows for reorganization, in July.
According to reports, DMX’s case is being questioned because he has failed to appear at any of the meetings with the creditors and the aforementioned discrepancies in his financial reports. In one report, X states that he makes $5,000 per month, but in another report he says he only makes $1,600. On top of that, DMX, real name Earl Simmons, claims to have nothing in clothing assets yet lists $1,000 a month in clothing expenses.
It’s a “pattern that continues” in his current bankruptcy case, Ms. Davis alleged. Read the full motion here.
In response to the allegations, DMX’s publicist wrote this in a statement:
“DMX did not receive any money that is mentioned in this lawsuit. 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.” ~Domenick Nati (Nati Celebrity Services)