Where there’s smoke, there’s fire. And if you’ve ever wondered how Tyga had all of these financial issues (reported in the media) but never claimed bankruptcy, well he did — secretly. theJasmineBRAND.com exclusively reports that the 26-year-old rapper quietly filed for Chapter 13 bankruptcy, 5 years ago!
Tyga (real name Michael Stevenson) was drowning in massive debt, saying that he only had less than $50K to his name and couldn’t afford to pay the debt he owed to creditors.
On December 13th 2010, Tyga – who is now rumored to be dating Kylie Jenner – filed for bankruptcy stating he had estimated assets in the range of $0-$50k and liabilities (debt owed to creditors) in the $100k-$500k range.
The rapper said his only creditor was a landlord who won a judgement against him for possession of the home he was staying in.
Based on records in Los Angeles County Court, the landlord sued Tyga for possession the home he was renting in Tarzana. The landlord eventually won a default judgement of $88,469 due to Tyga never showing up to court.
The case dragged on for years due to the rapper not paying up, which caused him to incur over 35k in interest on the judgement. Tyga only recently paid the debt to his ex-landlord and last year a satisfaction of judgement was entered.
The bankruptcy case got interesting when a motion for relief from the automatic stay was filed by HSBC Bank USA in January 2011, which accused Tyga of filing the bankruptcy in bad faith to delay, hinder or defraud the bank.
They explained that the rapper transferred all or part ownership, or other interest in, a property without the consent or approval of the court. The bank said that in June 2009, a woman named Olivia Blaisure transferred ownership of her home in Whittier, California from only herself to have her, Tyga and a man named Mark Cannon. She said she was adding them to the deed as a “gift”.
The bank said the principal amount owed on the home was over 607k and with interest and other fees a total of 736k+ was owed on the property. They wanted the bankruptcy judge to allow them to foreclose on the property due to the mortgage payments not being paid.
Then on February 3rd 2011, Tyga’s bankruptcy was dismissed due to him failing to file the required documents and no debt was wiped clean in the case.
Tyga hit the scene back in 2007 with his mixtape entitled ‘No Introduction’ and was signed by Cash Money Records soon after the release. However, he didn’t release a full length album until 2012, nearly a year after his bankruptcy was dismissed.
The rapper has had his share of financial issues over the years — being hit with numerous lawsuits and facing-off with landlords in court numerous times, due to him allegedly failing to pay rent or not moving out when they demanded he leave.