Fans of Toni Braxton are likely aware of the financial troubles the R & B singer has had over the course of the past few years. Since the height of her career she has filed for bankruptcy twice. The reasons behind each of her filings are likely similar to the reasons many Miami area residents find themselves filing for either Chapter 7 or Chapter 13 bankruptcy.
Prior to the first filing in 1998, Braxton had experienced great success. She recently indicated that spending money she didn’t actually have was the cause of that filing. This was in large part reportedly due to the way in which record deals are structured. The labels provide advances to signed artists on records that have yet to be made. Royalties are often small and artists find themselves paying for things such as videos, time in the studio and travel and clothes out of their own pocket. This constant being the hole was exacerbated by her propensity to over spend.
After emerging from that bankruptcy Braxton secured a new record contract and revue show in Las Vegas. A diagnosis of microvascular angina and lupus ended the show about a year and a half after it started. Another common reason for bankruptcy, financial issues surrounding Braxton’s health led her to file the second time. That Chapter 7 filing left her with several personal possessions. In addition to her Grammys she also kept her piano and Porsche.
Braxton still has career plans. In addition to occasional performances she has started acting as well. She is a good example of how it is possible to keep moving forward after a bankruptcy.
Source: ABC News, “Confessions of a Diva: Toni Braxton Reveals Story Behind Bankruptcy Headlines,” Joseph Diaz, Nov. 30, 2012
We handle Chapter 7 and Chapter 13 bankruptcy filings occurring throughout Southern Florida. If you would like to learn more about our practice, please visit our Miami Chapter 7 bankruptcy page.