Following the Astroworld tragedy, Travis Scott faces over 130 lawsuits amounting to $2 billion. Given the artist's $60 Million net worth, legal experts speculate that the only way to get out of those suits is to file for Chapter 7 or 13 Bankruptcy. This analysis is going to offer insights into how this can be possible.
A report from Rolling Stone says a massive new lawsuit is seeking $2 billion in damages from Travis Scott and other parties that had a hand in putting together Astroworld Music Festival.
This suit is set to have been filed on behalf of 282 plaintiffs, and it follows recent reports from AJ+ of 140 lawsuits and a $750 million suit that were filed earlier during the week.
Travis Scott's name and face, is behind the whole event, and as such, the tragedy befell him and given his past experiences, more brands might throw him under the bus.
Although it is not clear how much Scott will be expected to pay in settlements, a large majority of the fine will probably be higher than his estimated net worth.
One user took to Twitter to share that this massive lawsuit will end up causing insurance companies not to want to cover large concerts moving forward.
This Astroworld tragedy is going to change the future of how concerts and festivals are held, and the future does not look good for the events industry.
One other point is that the goal of this massive lawsuit is basically to bankrupt Scott and effectively end his touring career for a long-time.
Bankruptcy can reportedly help save Scott from these massive lawsuits
Experts have claimed that bankruptcy prompted by a collection of lawsuits can aid and abet the defended in getting out of trouble-free.
This is basically what is happening to Scott and the rest of the brands that have been mentioned in the multiple lawsuits that have been filed.
Any form of bankruptcy can temporarily help stop lawsuits, but then the Chapter-7 form of bankruptcy can help stop the lawsuit permanently, Attorney John G. Watts says.
This is the type of bankruptcy that Scott, whose full names are Jacques Bermon Webster II, is being touted to consider by various experts who are on his supporting corner.
The form of bankruptcy that is Chapter 7 can wipe off all the debt that an individual is facing, forcing the court to enter what is called "an automated stay".
This consumer protection lawyer from Alabama added:
No creditor can do anything. The court says FREEZE to everybody. They cannot call you, write to you, nor even sue you. And they can't proceed with any lawsuit, at least temporarily."
Attempting to stop any lawsuits permanently is a bit trickier than what we are led to believe, as this requires an excessive plan of execution in order for it to work.
The 'Chapter 7' bankruptcy allows this to happen, and should it be successful, it can put an end to any of the numerous suits that Scott is potentially facing.
Attorney Mark says that this is only possible if the individual will receive a discharge, making the lawsuit go away. However, it is not that simple.
This is how it goes:
- A suggestion of bankruptcy can be filed in the challenging suit by the defendant.
- This is to alert the state judge, court, and collection lawyer that there's a looming bankruptcy.
- The judge will then enter an order saying that nothing can happen until the bankruptcy case is over.
- If, at the end of the lawsuit, one is able to be discharged from the debt, then you no longer owe anything.
This means that there will be no reason for any of these lawsuits that Scott is being hit with, to exist. They will end there.
However, Attorney John G. Watts says that it is important for this to happen before a judgment is entered to get an individual sued.
Is Chapter 13 Bankruptcy possible for Scott?
If Scott were to file for bankruptcy, I personally think that he will somehow try to find a balance between Chapter 7 and Chapter 13.
This analysis has already established that Chapter 7 will give Scott a fresh start, and he will not even pay any of the money that he will owe in settlements.
One also has to be eligible to file any of these bankruptcies, which consists of reviewing the median income. Meaning that in this case, Scott will fall under Chapter 13.
Chapter 13 bankruptcy, according to Roger Gai's YouTube channel, consists of a payment plan that can last from 3 to 5 years.
The attorney's office will have to monitor the plan throughout the course of the payment, leading to high legal fees.
This is the most effective form of bankruptcy that will likely be entered into Scott's case, as it will allow him to pay some of the settlements for a few years.
This also helps him because it can keep the rapper in the music industry, allowing him to continue making money and creating new ventures with proceeds going to plaintiffs.
- This analysis piece is an argumentative form that cannot be referenced, entered into evidence or used in a court of law. Neither the journalist nor NewsBreak can be held responsible for the outcome of these lawsuits that Jacques Bermon Webster II (Travis Scott) is facing. The article only hedges out the uncertainty in these lawsuits and is meant to serve as a prediction.