Colloquially known as going out of business, bankruptcy is also a legal mechanism where ongoing business concerns shed some debts and restructure others. Personal bankruptcies normally fall into Chapter 7 (discharge) or Chapter 13 (repayment), while business bankruptcies are generally Chapter 7 or Chapter 11 (reorganization).
Curtis James Jackson III, AKA 50 Cent, filed for bankruptcy. Despite a Net Worth of $155 million a few months prior, he now lists assets and debts between $10 and $50 Million. Individuals who quickly make huge sums of money in a short time (think pro athletes, lottery winners), forget that the level of income will not go on forever. These people might spend too extravagantly, buying big houses and shiny, fast cars, not understanding the cash flow needs (I.e.- maintenance) of these assets when the money stops flowing in. In the case of 50 Cent, his bankruptcy documents stated his "debts are primarily consumer debts." One of his other business ventures also recently filed for bankruptcy as well.