Toni Braxton Bankruptcy Blues
Celebrities often have to take the hard road when it comes to being under public scrutiny for their actions. After R&B singer Toni Braxton filed for bankruptcy protection earlier this year, she is now being cast in ill light over allegations of bankruptcy fraud.
Learning The Hard Way
After suffering financial trouble for years, Toni Braxton filed for bankruptcy earlier this year. While waiting to receive relief from her debt obligations, Braxton was given some bad news; she is being investigated for alleged bankruptcy fraud.
It is reported that she gave $53,490 to her estranged husband. The bankruptcy trustee overseeing her case has viewed this as transferring of assets, a big no-no in the bankruptcy world. Apparently, the money was earmarked for repayments to creditors, but was given to her former husband instead. The trustee is now suing Braxton to get the money back so it can be used to pay creditors as intended.
Braxton’s representative says that, “all of the payments made to Lewis prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business.”