Once part of a well known, all girls singing group, Tionne “T-Boz” Watkins has found herself in financial trouble for the second time this year. Having filed for bankruptcy in Georgia back in February, Ms. Watkins’ case was dismissed by the court. Now back in court once again, Ms. Watkins has filed for Chapter 13 bankruptcy protection to help resolve her debts and get back on track.
Lifestyles Of The Rich?
Contrary to popular belief, not all bankruptcy cases stem from outrageous spending or lack of money management skills. In the case of many, including Ms. Watkins, her need for bankruptcy was not brought on by frivolous spending, but a lack of income and financial problems resulting from medical conditions.
Watkins owes around $800,000 in debt liabilities, which is mostly comprised of her $740,000 mortgage payment. Her home’s value continues to drop and she has been unsuccessful in selling the home on numerous occasions. Although she once earned millions from record sales, her royalties have been dwindling since the group’s popularity peaked in the early 1990′s. Further, Watkins suffers from Sickle Cell Disease and was diagnosed with a brain tumor in 2006, both of which have cost her hundreds of thousands for treatment. She is hoping that Chapter 13 can provide her with the debt relief she needs to regain control over her debt-to-asset ratio and continue to provide for her family.