What You, Bankruptcy, and Cardi B Could Have in Common

Rapper Cardi B filed a defamation of character lawsuit against YouTuber Tasha K. the facts of this case serve as an excellent example of bankruptcy law and procedure, especially when it comes to the role of the bankruptcy trustee and the 2004 examination to protect the bankruptcy estate.

Updated on January 1, 2025.

Key Points:

• Cardi B won a $4 million judgment against YouTuber Tasha K.
• A 2004 Examination allows a creditor to take the deposition of a debtor.
• A 2004 Examination is a good way for a creditor to uncover fraud.

Who is Cardi B?

Cardi B, real name Belcalis Marlenis Almánzar Cephus, is one of her generation’s most successful female rappers. Little did I know. Full disclosure: my wife loves Cardi B, and she is Dominican. Cardi B is Dominican on her father’s side, and her mother is Trinidadian.

Now, I admit, as an 80s kid listening to Freestyle music, I knew about Cardi B, but I didn’t know about Cardi B if that makes sense. So, of course, for this blog, I had to do some digging, and I started with Wikipedia. All I can say is wow! Her biography on Wikipedia is an impressive and long list of accomplishments. So, let’s go over some of her accomplishments first.

Cardi B hit the success stage running. “Invasion of Privacy” was her first studio album and was ranked number one on the Billboard 200. Billboard ranked “Invasion of Privacy” as the top female rap album in 2010. Cardi B followed this up by being the first female artist to win a Grammy Award for Best Rap Album as a solo artist.

Two more hit singles followed. The song “Bodak Yellow” resulted in Cardi B becoming the first female rapper to top the Hot 100 with a solo song and the first to achieve a diamond-certified song by the Recording Industry Association of America (RIAA).

Cardi B’s second hit single, “I Like It,” was the first time a female rapper had multiple number one singles on the Hot 100. She took it further by collaborating with Maroon 5 for her third Hot 100 number-one with the song “Girls Like You.” Two more singles have topped the Hot 100. One with Megan Thee Stallion in “WAP” and “Up.

Cardi B is the only female rapper to have earned multiple diamond-certified songs by the Recording Industry Association of America (RIAA). She has five number-one hit singles, more than any female rapper, three diamond-certified songs by the RIAA, 100 million certified units (album and songs) sold in the US alone, and over a billion streams on Spotify.

The total for Cardi B, drumroll please:

• A Grammy Award;
• Eight Billboard Music Awards;
• Six Guinness World Records;
• Six American Music Awards;
• Fourteen BET Hip Hop Awards;
• Two ASCAP Songwriter of the Year awards;
• Listed on Time magazine as one of the most influential people in the world;
• And Billboard’s Woman of the Year.

For lack of a better way to describe Cardi B’s career, it’s beyond impressive. And yet, she’s only 31 years old!

Why am I Writing About Cardi B

I came across an article from Black Enterprise regarding YouTuber Tasha K, whose real name is Latasha Kebe. I knew very little about the case besides knowing there was a lawsuit.

Cardi B had filed a lawsuit against Tasha K for defamation, invasion of privacy, and intentional infliction of emotional distress. The judgment was in favor of Cardi B for $4 million.

Every civil lawsuit has two steps: step 1 is winning the lawsuit, and step 2 is collecting on the judgment. This is where bankruptcy comes into play.

Tasha K Files for Bankruptcy

Tasha K filed for Chapter 11 bankruptcy. Remember, once bankruptcy is filed, the automatic stay kicks in, preventing civil lawsuits from moving forward. Not all cases are affected by filing for bankruptcy. For example, cases in family court dealing with issues of alimony and child support wouldn’t be affected as neither can be discharged in bankruptcy. Alimony and child support are known as domestic support obligations under the Bankruptcy Code and can be found in Section 101(14). It reads as follows:

(14A)The term “domestic support obligation” means a debt that accrues before, on, or after the date of the order for relief in a case under this title, including interest that accrues on that debt as provided under applicable nonbankruptcy law notwithstanding any other provision of this title, that is—

(A)owed to or recoverable by—

(i)a spouse, former spouse, or child of the debtor or such child’s parent, legal guardian, or responsible relative; or

(ii)a governmental unit;

(B)in the nature of alimony, maintenance, or support (including assistance provided by a governmental unit) of such spouse, former spouse, or child of the debtor or such child’s parent, without regard to whether such debt is expressly so designated;

(C)established or subject to establishment before, on, or after the date of the order for relief in a case under this title, by reason of applicable provisions of—

(i)a separation agreement, divorce decree, or property settlement agreement;

(ii)an order of a court of record; or

(iii)a determination made in accordance with applicable nonbankruptcy law by a governmental unit; and

(D)not assigned to a nongovernmental entity unless that obligation is assigned voluntarily by the spouse, former spouse, child of the debtor, or such child’s parent, legal guardian, or responsible relative for the purpose of collecting the debt.

Chapter 11 bankruptcy is similar to Chapter 13. Still, one significant difference is that Chapter 13 has debt and asset limits, so Chapter 11, while commonly applied to businesses for individuals, is for high-wealth individuals. For example, Chapter 13 limits are currently $465,275 in unsecured debt and $1,395,875 in secured debt. The limits are in Section 109(e) of the Bankruptcy Code. The limits do change every three years with the next change coming in June of 2024.

Your Bankruptcy and Tasha K’s Bankruptcy

According to the article by Black Enterprise citing XXL Magazine, Cardi B accuses Tasha K of hiding assets in offshore accounts and trusts based on court filings by Cardi B’s lawyers. Here’s where you come in.

The typical bankruptcy case runs smoothly. But at times, some issues and questions cannot be resolved quickly at the 341 meeting of creditors, and the trustee, or any other interested party, can file what is known as a 2004 examination to dig deeper and ask more questions. It’s known as a 2004 Examination as it is located in Section 2004 of the Federal Rules of Bankruptcy Procedure.

A 2004 examination can happen for many reasons, not all bad. The bankruptcy trustee usually schedules the 2004 Examination, likely because the trustee needs more information or clarification on specific issues. Of all the 2004 examinations I’ve been involved in, after that, the case proceeded to discharge, or a payment plan was arranged with the trustee to finalize the case. I’ll write more about the 2004 examination process in a future blog by comparing it to past cases.

• The Adversary Process – Rudy Giuliani’s Chapter 11 Bankruptcy

With Cardi B’s case, now that she has a judgment against Tasha K, Cardi B is a creditor. When it comes to bankruptcy, Cardi B is no different than any other creditor, for example, an American Express credit card or Capital One. Cardi B can schedule a 2004 Examination as a creditor to ask questions about the debtor’s finances. As a creditor, Cardi B can even object to the bankruptcy plan, which is common. For example, creditors routinely object in Chapter 11 and Chapter 13 cases because the debt amount is listed wrong, or the creditor believes that the debtor can pay more into the bankruptcy plan.

But in this case, it’s not so much the 2004 Examination but what was potentially revealed in questioning Tasha K over her finances by Cardi B’s lawyers. If bankruptcy fraud was committed, the U.S. Trustee’s Office, a branch of the Department of Justice, gets involved. If assets are hidden or not disclosed, there are potential criminal charges.

It’s important to distinguish between the U.S. Trustee and the bankruptcy trustee. The bankruptcy trustee is a private individual, typically a lawyer, sometimes an accountant or CPA (certified public accountant), whose job is to protect the bankruptcy estate on behalf of creditors. The U.S. Trustee’s Office is a government agency. Rarely will you see the U.S. Trustee’s Office involved in a typical Chapter 7 or Chapter 13 bankruptcy case, although they may show up occasionally at a 341 meeting.

Don’t Lie to the Bankruptcy Trustee

The reality of life is that clients are not always truthful with their lawyers. Ten out of ten times, this only makes things worse. I have been on the receiving end of clients lying, or maybe it’s selective amnesia. I have had clients forget to mention that they transferred real estate to a family member or that they transferred a boat to a friend just days before a bankruptcy was filed. I’ve had clients with fake identities, even two cases where the debtors filed for bankruptcy because a parent stole their identity and racked up credit card debt fraudulently, including multiple foreclosures.

Those cases started with a lie, and it all went downhill from there. So, today’s lesson is to be honest with your lawyer. If your lawyer knows the truth ahead of time, we can take steps to protect a client’s interest. But lie to your lawyer; the consequences could be severe, such as being prosecuted for bankruptcy fraud.

How serious is bankruptcy fraud? Every bankruptcy court has a link and information to contact the U.S. Trustee’s Office to report bankruptcy fraud. That is shown on every court website. All it takes is one phone call to upend your life. And for what? To save a few dollars for yourself so creditors get less or nothing? Trust me, it isn’t worth it. Just ask my two divorce clients who found out their spouses were committing bankruptcy fraud during the divorce case. Federal prison is still a prison.

By the way, I can’t write about Cardi B and not listen to her music. So, since I write about money-related issues and we can all use a little more money, I chose to listen to “Money.”

To follow Cardi B on X/Twitter, click here.

Black Enterprise can be followed by clicking this link and XXL Magazine via this link.

The RIAA can be followed by clicking here and Billboard here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon books. To access my YouTube channel, click this link.

Additional blog content is available below or by using the search bar at the top of this page:

• Bankruptcy
• Your Wallet

Please note the information on this site does not constitute legal advice and should be considered for informational purposes only.