EXCLUSIVE: Damon Sprint Recordsdata For Chapter To Get Respiratory Room From $25M In Debt
Damon Sprint filed for Chapter 7 chapter in Florida as he seeks safety from greater than $25 million in money owed largely tied to unpaid taxes, little one assist and authorized judgments.
The 54-year-old Roc-A-Fella Information co-founder submitted a 56-page petition to the U.S. Chapter Court docket for the Center District of Florida on Thursday (September 4), itemizing simply $4,350 in private property.
That features a $500 telephone, $2,500 in jewellery, clothes, two firearms and $100 in money. He reported month-to-month bills of $5,200 and no revenue.
Court docket filings present Damon Sprint owes over $8.7 million in again taxes to New York State and the IRS, with money owed courting again to 2005. The New York State Division of Taxation and Finance alone is in search of $9.65 million, whereas Los Angeles County needs $5.79 million.
The New Jersey Division of Taxation is pursuing $3.5 million from the early 2000s, bringing the overall to over $19 million that’s because of the Federal Authorities.
Damon Sprint additionally owes greater than $647,000 in unpaid little one and spousal assist, together with obligations to ex-wife Rachel Roy and Cindy Morales. The New York Metropolis Division of Social Companies claims one other $487,000 in arrears and academic prices.
The submitting contains over $5.5 million in unsecured claims, comprising lawsuits, unpaid wages and authorized charges. Among the many collectors are filmmaker Josh Webber and Muddy Waters Footage, who received a $4 million default judgment in opposition to Sprint in 2025 over the movie Expensive Frank.
Photographer Monique Bunn is owed $30,000. Producer Edwyna Brooks is listed at $78,000, whereas lawyer Christopher Brown is owed $100,000.
Authorities companies are listed as Sprint’s largest secured collectors. He disclosed that his enterprise entities — together with Sprint Movies Inc., Poppington LLC and Roc-A-Fella Movies Inc. — presently maintain no worth.
In 2024, New York officers auctioned Sprint’s one-third stake in Roc-A-Fella Information for about $1 million to assist repay his tax invoice. Nonetheless, proceeds have been redirected to cowl again taxes to New York and $145,096 in little one assist, leaving different collectors unpaid.
The court docket has not but scheduled a collectors’ assembly. If accredited, the case may end result within the liquidation of Sprint’s remaining property.
This isn’t precisely stunning. Damon himself instructed the court docket by means of legal professionals that he was contemplating making this transfer, which may grow to be a shrewd enterprise transfer.
Chapter 7 chapter affords people the chance to hit the reset button when debt turns into unmanageable.
It clears away most unsecured payments, resembling bank cards, medical bills, or payday loans, in just some months. As soon as that occurs, collectors can’t name, sue, or garnish wages.
The method additionally alleviates stress instantly by routinely pausing collections, foreclosures, or evictions. Most individuals don’t lose a lot, if something, as a result of the regulation permits them to maintain the necessities they want, resembling a automotive, home items, retirement financial savings, and typically even a portion of their dwelling fairness.
Not like Chapter 13, there’s no lengthy reimbursement plan—also known as a “no-asset” case as a result of collectors obtain nothing in any respect.
Whereas a Chapter 7 submitting stays on a credit score report for as much as ten years, many individuals start rebuilding their credit score inside a yr or two, because the heavy debt is eradicated.
Briefly, it’s a fast option to get reduction, preserve what issues most, and begin recent.
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