Toni Braxton Settled Bankruptcy Issues

Toni Braxton has finally settled her bankruptcy case after claiming she had run up debts of between $10million and $50million. 

The 45-year-old, who filed for Chapter 7 in 2010, agreed this week to pay $150,000 to settle the case, according to TMZ.

The singer previously filed for bankruptcy in 1998 for debts of $3.9million.

In the bankruptcy documents Braxton listed amongst her creditors: AT&T phone company, The Four Seasons Hotels, DirecTV, Neiman Marcus [an upmarket department store], Tiffany & Co. BMW Financial Services, American Express and Flamingo Hotel in Las Vegas.

The case dragged on for a number of reasons.

As part of the deal, Braxton agreed to buy back some of the personal items she lost and pay $5,000 a month for 15 months, according to TMZ.

Braxton allegedly made all the payments, except the final one of $50,000.

Another issue was whether the star was required to pay the $754,000 she made for overseas concerts.

The performances took place after she filed for bankruptcy, so she argued she was entitled to keep the money she earned from those shows.

But the money for the concerts was put in escrow before the performances, so the trustee argued she was essentially paid prior to her bankruptcy filing and should therefore hand it over.

Braxton and the trustee finally came to an agreement this week, with Braxton paying $50,000 she owed for the property and $100,000 from the shows.

Finally, Braxton was also granted permission to buy back the copyright on a few of her songs for $20,000, which go to auction on July 15.

A judge still needs to sign off on the case.

When she filed for bankruptcy the first time, she said the highly publicised case had taught her a lesson and that she subsequently changed her business strategy.

‘I learned that I had to believe in myself and not just to be comfortable with the opinions of others,’ she told Ebony Magazine in 2000.

‘I’m just more in control; I dot the I’s and cross the T’s … I finalise everything.’

At the time critics blamed  Braxton’s erratic behaviour and penchant for breaking appointments for plunging her into debt, whilst others said her expensive tastes (600-thread-count bedsheets and jewellery from Cartier and Tiffany & Co.) were the culprit.

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Source:  DailyMailUK

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