• 07
  • October
    2010

Toni Braxton has filed for bankruptcy a second time, citing millions of dollars of debt that she cannot pay. Braxton's financial problems tipped over the edge to unmanageable after she could not perform in a series of scheduled shows in Las Vegas because of health problems. She had to cancel because of a preexisting heart condition, but because it was preexisting, her insurer denied her claim to be reimbursed for the cancelled shows. She brought a lawsuit against the insurer, Lloyd's of London, but it was dismissed.

Braxton and her company, Liberty Entertainment, filed for Chapter 7 bankruptcy on September 30, according to the Associated Press. Braxton's attorney says that her bankruptcy will allow her to pay her tax debts and sell off properties to pay for some of the debts, which are between $10 million and $50 million. The bankruptcy will allow Braxton to still be able to care for her children.

Her attorney also said that the bankruptcy filing will not affect the 43-year-old singer's ability to perform in the future. Her attorney said that the decision was a difficult one for her client, but that after trying to negotiate with creditors, it became the only option. A spokesperson for Braxton says that the case was settled to everyone's satisfaction.

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