Curtis James Jackson, III, better known as rapper 50 Cent, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, District of Connecticut (“Bankruptcy Court”) on Monday, July 13th. His bankruptcy filing followed shortly after a New York jury verdict in the amount of $5 million in favor of Lastonia Levitson, who sued him for intentional infliction of emotional distress and violation of the New York Civil Rights Law related to Jackson’s release of a private, intimate video depicting Levitson having sex with her then boyfriend. The bankruptcy filing stayed, pursuant to 11 U.S.C. 362, the punitive damages phase of the trial that was set to commence on the morning of the filing.
Levitson immediately filed a Motion for Relief from the Automatic Stay (“Stay Relief Motion”) seeking relief from the automatic stay to proceed with the punitive damages phase of her New York action. Today, the Court granted Levitson’s Stay Relief Motion, terminating the automatic stay of 11 U.S.C. 362 so that Levitson may proceed with the punitive damages phase of her case through entry of judgment and waived the 14 day stay so that such proceedings may continue immediately. The Bankruptcy Court did not modify the stay to allow any collection activity, including any lien or attachment, or the perfection of any security interest.
The meeting of creditors in Jackson’s bankruptcy case is currently scheduled for August 5, 2015 at 2:00 P.M. The deadline for creditors to file proofs of claim is November 3, 2015. The deadline to object to dischargeability of certain debts pursuant to 11 U.S.C. 523 is October 5, 2015.