Justice Department Petitioning Against DMX's Bankruptcy Case [Update: Bankruptcy Denied By New York Judge]

Justice Department Petitioning Against DMX's Bankruptcy Case [Update: Bankruptcy Denied By New York Judge]

DMX's attempt to file for bankruptcy is being challenged by a U.S. Trustee because of several delays and inconsistencies.

DMX can't seem to catch a break. The rapper who filed for bankruptcy in the summer, is facing some problems from the Justice Department when it comes to his filing. The Justice Department are none too happy with Darkman X, and are challenging his bankruptcy restructuring, because of delays and inconsistencies.

A Justice Department official U.S. Trustee Tracy Hope Davis monitors the bankruptcy claims filed in New York, and she is petitioning that DMX's be turned into a Chapter 7 liquidation rather than a Chapter 11 case. This means that X would have to sell off his assets to repay all his creditors, as the Wall Street Journal reports.

Davis requested this following DMX's failure to show up for a meeting with his creditors last month, as well X submitted sloppy paperwork that's "in disarray" and inconsistent. Some of these inconsistencies include DMX's monthly income, which some paperwork indicated as $5,000 while another indicated $1,667. 

DMX initially filed for bankruptcy in July, with a debt of more than $1 million in child support, and $21,000 from an auto lease. DMX's bankruptcy lawyer declined to comment on this new development. It will go in front of a judge in U.S. Bankruptcy Court in White Plains, N.Y on December 5th.

[Update: Bankruptcy Denied By New York Judge]

According to The Journal News, a New York judge has denied DMX's request for bankruptcy because the financial information he provided wasn't trustworthy.

Bankruptcy Court Judge Robert D. Drain dismissed the case at the request of U.S. Trustee Tracy Hope Davis, who stated that X failed to give the court "trustworthy" information. Her office accused the rapper of "obvious inconsistencies regarding his income and assets, rendering it impossible to ascertain his financial affairs." 

Unfortunately, this means X may lose his possessions, including his share of a Mount Kisco, New York home, and on top of this he's been prevented from re-filing for bankruptcy for the next 18 months.

Here's hoping things improve for Dark Man in the immediate future. 

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