Toni Braxton’s debts discharged in bankruptcy court
Several months ago, we wrote about Toni Braxton’s ongoing bankruptcy proceedings, during which a bankruptcy judge ordered that the singer’s Georgia home go into foreclosure. Now, however, it appears that Braxton’s Chapter 7 bankruptcy case will have a more positive ending. Recently, Braxton was awarded a discharge of several of her debts, which will allow her to have a fresh start.
Braxton filed for Chapter 7 bankruptcy almost a year ago, citing $18.3 million in debts and just $1.6 million in assets. Her reported debts included $16 million in royalty payments to her former and current record label, as well as property taxes on her Duluth, Georgia home and three years of federal tax payments owed to the IRS. In addition, she also owes several thousand in unsecured debts to credit card companies and retailers.
Although the court documents from the bankruptcy court do not specify which of Braxton’s debts will be discharged, the general rule is that most debts are eligible to be discharged as long as they existed at the time of the bankruptcy filing. Therefore, it is likely that much of Braxton’s debt has been discharged. One exception to this is Braxton’s tax payments, which are not dischargeable under federal bankruptcy law.
Last month, Braxton won another victory in bankruptcy court, when a judge approved a deal that reportedly will prevent the liquidation of several of Braxton’s personal belongings and assets, such as furniture and household goods, jewelry, and vehicles. In order to avoid liquidation, however, she had to agree to pay her bankruptcy estate $5,000 per month for the next 15 months.
Source: Wall Street Journal, “Toni Braxton Scores Bankruptcy Victory,” Jacqueline Palank, Aug. 30, 2011
Posted on behalf of
1718 Peachtree St NW, #385
Atlanta, GA 30309
Phone: (678) 915-2634