Singer Toni Braxton Files for Chapter 7 Bankruptcy, Again
Celebrity songstress Toni Braxton is singing a tune she’s heard before: bankruptcy. The diva and winner of Grammy, Billboard and American Music Awards has filed for Chapter 7 bankruptcy for the second time in the last decade and a half.
In Braxton’s latest Chapter 7 bankruptcy case, the singer has filed for protection in Los Angeles with reported assets of between $1 and $10 million, and debts and liabilities in the $10 to $50 million range.
As a part of the Chapter 7 filing, Braxton will likely be called upon to liquidate her assets to pay off creditors and debtors.
Her list of creditors includes not only luxury goods retailers and high end restaurants, but also medical bills and funds to performing arts industry groups. Among those creditors are companies like AT&T, the Four Seasons Hotels, Cedars-Sinai Medical Center, Tiffany & Co, and RCA Music Group and the Screen Actors Guild, according to Fox 10 in Phoenix.
She also owes money to the Internal Revenue Service and to local and state tax administrators, and said in her bankruptcy petition that she might owe money to the California Department of Motor Vehicles and the City of Los Angeles Parking Violations Bureau.
The IRS filed a lien against her last year for almost $400,000.
According to the Wall Street Journal, Braxton recently posted a message on Twitter saying, ” “It’s my birthday… Not a happy birthday, but it’s my birthday,” in which she may have been referring to her troubled finances.
Braxton has an affinity for luxury goods. She was quoted as saying “no woman should go without an AmEx card,” and she is well-known for her love of the Tiffany brand of products. At her wedding, her wedding cake portrayed a stack of the trademark powder blue Tiffany boxes, which at the time became a trend-setting piece for weddings everywhere.
In 1998, Braxton faced negative publicity from her first Chapter 7 bankruptcy filing. That filing came after a dispute with her recording contract at La Face Records, in which she sued to get out of a contract that she claimed only paid her 35 cents per album, while they made almost $200 million in sales, according to the LA Times.
Signs of Braxton’s financial troubles this time around first appeared about a year ago, when word came out that she was facing foreclosure, as she was having trouble making payments on her home in Century City, Los Angeles. Just before that, she was sued by City National Bank for about $675 thousand over the terms of a 2006 concert cancellation and the insurance company’s unwillingness to cover the losses.
Braxton had a heart condition that caused the concert to be canceled, and the insurance company claimed that she had not disclosed her illness ahead of time.
She has remained active over the years, appearing on Broadway in “Beauty and the Beast” and putting out several albums and appearing in several movies. Over her career, she’s earned six Grammy Awards.
She is also an advocate for awareness of the heart disease that she suffers from.
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