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Naomi Campbell….broke?

Posted by The ProWife in Celeb News, Fashion and Style on 12 31st, 2009 | No Comments Yet

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Word on the street is that Naomi Campbell is about to file for Chapter 11, says JC Report on Twitter a couple of days ago.

A cosmetics-marketing company is suing Naomi Campbell for allegedly keeping its cut of the profits earned from a fragrance-licensing agreement.

The company says she stopped paying Moodform Mission its share of proceeds from scents it helped develop. The scents included Naomi Campbell, Cat Deluxe and Seductive Elixir.

Just because someone files for Bankruptcy doesn’t mean they are actually broke.

Many businesses file Chapter 11 to remain in control of their business while paying off some of their debts. Their creditors have to abide by the bankruptcy laws and get compensated by the terms of the court. Businesses also file Chapter 11 so they won’t have to pay the entire amount back to their creditors and sometimes they are totally forgiven for an amount owed. It is up to the bankruptcy courts to decide who, when, and how much is paid to each creditor. You must be approved for a Chapter 11, not every company is.

Many wealthy people file Chapter 11 bankruptcy. Donald Trump casino’s group filed for Chapter 11 in February of 2009. Donald Trump is very wealthy, but Trump Entertainment petition listed less than $50 million in assets and nearly $500 million in debt. It was his company’s debt not his personal debt.

This seems to be the case for Naomi Campbell. The amount of the lawsuit wasn’t disclosed. Naomi has made millions of dollars in the modeling world. She is also dating a billionaire at the present time. I am sure, though, that any debt she has incurred will be her responsibility.

It is a smart move to file for Chapter 11 bankruptcy to keep control of your companies’ assets if you have a large debt and still would like to continue to do business.