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Atlanta singer accused of bankruptcy fraud Atlanta, GA

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Atlanta singer accused of bankruptcy fraud

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Over the past two years, Atlanta singer Toni Braxton has dealt with significant financial issues, going deep into debt and filing for personal bankruptcy. It appeared that her money troubles were over last year when her debts were discharged through the Chapter 7 bankruptcy process. You can read more about that in our earlier bankruptcy blog post.

However, that does not seem to be the case. Braxton’s case is back in Georgia bankruptcy court over allegations that Braxton fraudulently transferred more than $50,000 to her estranged husband in an effort to conceal those funds from her creditors. Braxton denies making such a fraudulent transfer.

The allegations were brought by the bankruptcy trustee that was appointed to oversee the repayment of Braxton’s debts under the terms of her bankruptcy case. According to that trustee, Braxton transferred $53,490 to her husband after that money had been earmarked to repay creditors under the bankruptcy plan. Braxton and her husband are currently separated, but remain married.

The trustee is accusing Braxton of attempting to hide the funds in order to keep that amount away from her creditors. She has vehemently denied this claim through this recent statement, which was made by her representative.

“All of the payments made to [Braxton’s ex-husband] prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business,” the representative said. It remains to be seen whether Braxton will be able to offer proof of this and clear her name.

Source: Examiner, “Toni Braxton in trouble over fraudulent transfer in bankruptcy case,” Alice Miekle, Oct. 29, 2012

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