DMX Is Facing Another Bankruptcy Case

DMX’s bankruptcy restructuring is being challenged by the Justice Department, according to The Wall Street Journal.

Given the delays and inconsistencies in DMX’s case, U.S. Trustee Tracy Hope Davis, a Justice Department official who monitors bankruptcy cases filed in New York, petitioned to have DMX’s bankruptcy case converted to a Chapter 7 liquation from a Chapter 11 case, which would force the rapper to sell his assets in order to pay off his creditors, according to the newspaper’s website.

Among the inconsistencies in DMX’s case: Davis says that in one court filing that DMX said that his monthly income was $5,000, but that another had it as $1,667, the story reports.

“The debtor’s actions have eroded the confidence of the Office of the United States Trustee and others that the debtor will be candid in the disclosure of his assets,” Davis wrote in court papers filed Friday, as per The Wall Street Journal.

The U.S. Bankruptcy Court in White Plains, New York is scheduled to consider Davis’ request at a hearing that is scheduled for December 5, the story says.

In July, The Wall Street Journal reported that the Yonkers, New York artist filed documents in Manhattan court stating that he has $50,000 in assets, while owing between $1 and $10 million in debts. DMX told authorities at the time that he filed for Chapter 11 “to enable me to reorganize my financial affairs.”

DMX's debts include more than $1 million in child support and more than $20,000 in automobile lease payments.

DMX is also being sued by Heavy Rotation, which has accused the rapper of accepting advance payments for concert appearances, but then failing to perform at concerts the agency booked, as per The advances included more than $50,000 to pay some of the rapper’s outstanding child support payments, the lawsuit says, according to

"DMX did not receive any money that is mentioned in this lawsuit,” DMX’s representative Domenick Nati said in a statement. “Any financial transaction in this case took place solely between the booking agency and DMX's former manager. DMX did not personally review, witness, or agree to the terms that are mentioned in this case."

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