New Jersey music fans might be familiar with rapper Tyga, whose real name is Michael Ray Stevenson. In Dec. 2010, Tyga filed for Chapter 13 bankruptcy. That bankruptcy was dismissed in February of this year for failure to provide required documents to the court. He did not receive a discharge of any of his debts.
At the time of the filing, the rapper had been evicted from a rental home and accused of filing the bankruptcy in order to avoid paying rent owed to his landlord. That debt was recently paid. However, when his petition was filed, Tyga reported that he had approximately $500,000 in debts and only $50,000 in assets.
In Jan. 2011, HSBC Bank USA made its own allegations of fraud and bad faith against Tyga. The bank was in the process of foreclosing on a home that had an unpaid mortgage debt of around $700,000 when the bankruptcy stalled that process. It turns out that in June 2009, the original owner added Tyga to the deed of the home along with one other person. The bank filed a motion with the court for permission to continue its foreclosure of the home.
There is a possibility that if the rapper had been forthcoming with the court, he might have received a discharge of some or all of his debts. Full disclosure of all debts and assets is a required part of the process. New Jersey residents who want to restructure their debts through the filing of a Chapter 13 bankruptcy need to be aware that any appearance of impropriety might result in a dismissal, which would mean they remain liable for all debts.
Source: hiphopdx.com, “Tyga Reportedly Filed For Chapter 13 Bankruptcy 5 Years Ago“, Cherise Johnson, Feb. 7, 2016
