Young Buck, a rapper who works frequently with recording artist 50 Cent, filed for bankruptcy protection months ago. Apparently, he filed under Chapter 11, which is usually associated with a business that wants to remain in operation while it reorganizes its debts in bankruptcy. More often, individuals who want a bankruptcy reorganization file under Chapter 13. The nature of Young Buck's debts and his business dealings may have made Chapter 11 more logical in his particular case.

The type of bankruptcy that most laypeople think of as "bankruptcy" is a process that involves liquidation of the debtor's non-exempt assets. For individuals, a liquidation bankruptcy is filed under Chapter 7. In the Young Buck bankruptcy case, the trustee is saying that it is unlikely Young Buck will be able to emerge from a bankruptcy reorganization. He will probably have to convert to a Chapter 7 bankruptcy and liquidate his assets. (Incidentally, all the credit for "What rhymes with liquidation?" goes to Jacqueline Palank who wrote it in her recent post on Young Buck's bankruptcy.)

Cincinnati Chapter 7 bankruptcy attorneys noted from news reports that Young Buck (whose real name is David Darnell Brown) was hoping to emerge from Chapter 11 bankruptcy by revising his recording contract with 50 Cent's G-Unit Records. Unfortunately, G-Unit declined to revise the agreement. With it, the trustee in Young Buck's case was optimistic he could reorganize his debts and emerge from bankruptcy. Without it, the trustee feels Young Buck will have little choice but to convert to Chapter 7 and liquidate.

Source: Bankruptcy Beat "Young Buck Faces Liquidation" Oct. 10, 2011