Lil Kim’s Money Woes
The rapper previously claimed she was over $4 million in debt, owing $2 million for a loan on her New Jersey home and nearly $2 million in unpaid taxes. Kim offered to setup a payment plan of $5,500 a month, but the trustees objected to her Chapter 13 bankruptcy claim, stating her debts exceeded the amount needed to be eligible for Chapter 13.
“Based upon Ms. Jones’s own schedules, she is clearly ineligible to be a Chapter 13 Debtor under 11 USC 109(e) with secured and unsecured debt each exceeding $2 million,” court documents read. “Since Ms. Jones is not eligible to be a Chapter 13 Debtor, she should not be afforded the benefit of the Court’s Loss Mitigation Program in connection with this Chapter 13 Case.”
The trustees have given Kim the chance to file a proper bankruptcy case, most likely Chapter 7 or Chapter 11, and added that the “Spicy” rapper will the be able to “renew her application for loss mitigation at that time if appropriate.”
The New York rapper’s Alpine, N.J. home was also recently put up for auction after a judge ruled Kim in default. Valued at over $3 million, Lil’ Kim originally purchased the 6,000-square-foot home in 2002 for $2.3 million, but reportedly still owes nearly $1.9 million on the house.