Phora filed for bankruptcy through his LLC while still owing Warner Records $200,000, years after leaving the label.
Phora filed for Chapter 11 bankruptcy in Los Angeles federal court while still owing hundreds of thousands to Warner Records, the label he left in 2019 after a brief major-label run.
The rapper submitted the petition on August 1 through his business entity, Phora LLC, in the U.S. Bankruptcy Court for the Central District of California.
The filing lists estimated assets and liabilities between $1 million and $10 million and notes 50 to 99 creditors. It also states that unsecured creditors are unlikely to receive payment once administrative costs are covered.
Among the most significant debts is a $200,000 contingent and unliquidated claim by Warner Records, signaling unresolved financial obligations from Phora’s time with the label.
Phora signed with Warner Bros. Records in 2017 after gaining traction with his independent project “With Love.” But after internal changes at the label, including a new CEO and staff, he chose to part ways in 2019.
He later said the split gave him complete creative control, noting that Warner discouraged the release of his song “Forgive Me.” After leaving, he dropped the track independently and described it as deeply personal.
Phora made the separation public by tearing up his Warner contract on Instagram. He returned to releasing music under his own label, Yours Truly, and launched a sold-out tour shortly after.
Another disputed claim of $400,000 from Oren Lang is also listed, making them the two biggest unsecured creditors in the case.
Phora signed the bankruptcy paperwork as the managing member of the LLC. He also filed a separate personal bankruptcy petition on the same day, according to court records.
Other notable creditors include Nixon Peabody LLP with a $77,689 claim, Lowe Law at $30,643, City National Bank with $25,016, and American Express at $9,164.
The remaining debts are owed to various production vendors, legal firms and service providers.
The filing includes a corporate resolution giving Phora the authority to pursue Chapter 11 protection and to hire legal counsel. Leonard Pena of Pena & Soma, APC, is representing the LLC in the case.
Chapter 11 will allow Phora to run his business and remain operational while reorganizing the debts under court supervision.
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