Looks like The Source magazine is ready to rebound, after being in financial disaster.

After a long and tumultuous year, the magazine, once dubbed the Bible of Hip-Hop Music, Culture and Politics, emerged from bankruptcy last week, despite doubts from naysayers.

According to a press release, The Source essentially erases all of the sins of the previous management team, which included over $30 million of debts, more than 60 lawsuits and nearly countless other liabilities.

"With the conclusion of the bankruptcy process, The Source is now well-positioned financially and poised for growth," said Jeffrey Scott, Chairman of the Board of The Source and a Managing Director of Black Enterprise/Greenwich Street Corporate Growth Partners, the company's majority owner.

"The Source belongs to hip-hop. The company exists to serve hip-hop. The Source will continue to empower its readers, advertisers and other stakeholders to achieve their goals -- be it promoting an album or a product or just raising a voice to reflect the mood of the culture," added Jeremy Miller, CEO and President of the magazine.

With a second chance, the magazine will continue to be published each month and undertake other brand building initiatives. The magazine's founders, Dave Mays and Raymond "Benzino" Scott, were fired in early 2006 (see "David Mays, Benzino Booted From The Source") and officially have "absolutely no ownership in or affiliation with The Source," the magazine said in a statement.

Earlier this year, the magazine filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Manhattan. According to court documents, converted and consolidated a previous Chapter 7 filing and listed assets of about $1.3 million and liabilities of over $30 million.

The bankruptcy was due to "dishonest business practices by former management causing the hip-hop media outlet's advertisers to flee," according to court papers.

In closing, as they now come out of bankruptcy, The Source thanked those who consistently supported the magazine "during its most troubled hours" and "looks forward to working with the greater hip-hop and entertainment communities to make things better for all."

In related news, Nas will grace the cover of their special year-end issue.