Toni Braxton fans here in Atlanta may have heard that the Grammy-award winning musician recently settled her second bankruptcy case. Her first bankruptcy occurred in 1998.
In this most recent case, Braxton, like so many other Americans, suffered financial difficulties after a sudden medical diagnosis led to increased expenses and lost work. Braxton was diagnosed with Lupus in 2010, which forced her to cancel an upcoming performance contract in Las Vegas, resulting in the Chapter 7 bankruptcy filing.
In Chapter 7 bankruptcy, it is generally possible to permanently discharge all or most of your debts. When no complications surface, this entire process generally lasts about 60 days. In Braxton's case, however, the bankruptcy process dragged on for more than two years.
Braxton's case took quite awhile to settle because of disputes regarding Braxton wishing to buy back some of her personal property that she lost during the bankruptcy. There were also disagreements between her and her bankruptcy trustee regarding money she earned after filing for bankruptcy.
Most bankruptcy cases are not so complicated, and it is possible for many people to hold onto their residence, car and other personal property while filing for bankruptcy.
Braxton's bankruptcy is a reminder that sudden medical expenses or a disability can lead to unmanageable financial demands for anyone. Here in Georgia, people who are overwhelmed with debt should be aware that they do have options. In many cases, Chapter 7 bankruptcy is a viable option that allows people to wipe the slate clean and take advantage of a fresh financial start.
Source: TMZ, "Toni Braxton Bankrupty Case Finally Settled," July 6, 2013