Kanye West Filing Bankruptcy?

Kanye West Filing Bankruptcy?

Is Kanye West filing bankruptcy? He could. But we’ll see if he does. The point of this post is that someone worth a purported $100 million can file for bankruptcy. Normally such wealth doesn’t warrant a bankruptcy. With $50 million in debt, though, maybe it will.

The purpose of bankruptcy, whether you are Kanye West or you are you, is protection from creditors. Kanye West could need protection from his creditors and could be filing bankruptcy. According to this TMZ story, he may have the debt to make it worthwhile.

Anyone can file for bankruptcy who is eligible. Your financial worth cannot deny you access to bankruptcy protection. Granted you may have to repay all your creditors if you are worth $100 million, but you can do it on your terms.

Bankruptcy is a financial tool to del with your debt. Maybe you file bankruptcy because you can’t afford any of it. Maybe you file because you can only pay part of it. An maybe, why Kanye West may be filing bankruptcy, you do it because you need to rearrange your debt to manage it. There are many reasons to file for bankruptcy.

Creditors often cause conditions that give rise to bankruptcy filings. Lawsuits and judgments are common culprits. If, for example, you are sued and a judgment issued against you, you wages may be garnished. Your assets seized or frozen. Or any number of other options creditors can take to recover the money they are owed.

Bankruptcy blocks creditors from collecting from you. This means they cannot do anything to collect, or try to collect from you. No calls. No letters. No lawsuits, judgments or liens. Nothing. And that’s why people file for bankruptcy. Whether you are Kanye West filing bankruptcy or anyone else, that is the purpose of filing bankruptcy.