Toni Braxton Bankrupt Again
First Published: October 7, 2010 5:20 PM EDT Credit: WireImage
LOS ANGELES, Calif. -- Toni Braxton has filed for Chapter 7 bankruptcy again.
According to documents obtained by Access Hollywood, the 43-year-old singer lists her debt between $10 and $50 million and lists her assets somewhere between $1 and $10 million.
The singer’s filing includes a 60-page creditor’s list of different businesses and people to whom she could potentially owe money. Included on the list are AT&T, Verizon, Sprint, Tiffany & Co., The Four Seasons Hotels, DirecTV, Neiman Marcus, Orkin Pest Control, American Express, FedEx and The Internal Revenue Service. The DMV in both California and Nevada are also listed.
A rep for the singer released a statement about her bankruptcy to Access on Thursday.
“Toni Braxton and her Company, Liberty Entertainment filed Chapter 7 petitions following a prolonged health crisis that hindered her ability to work and perform. After considering various options, Ms. Braxton determined that this course of action will enable her to fulfill her obligations to the IRS, rid her of upside down real estate in Atlanta and take care of her two small children,” the statement said. “In April of 2008, Ms. Braxton was hospitalized for microvascular angina, a serious heart condition, which required that she cease work immediately. As a result, she had to cancel her sold out shows in Las Vegas. Although these performances were insured, the insurance company denied her claim which has resulted in costly ongoing litigation. Although her health is currently good, she was not able to get out from under the debts she incurred when she was unable to work.”
Adding, “Ms. Braxton will be keeping her upcoming performance commitments as well as all spokesperson and other contractual obligations.”
The singer’s attorney, Debra Grassgreen, also released a statement about Braxton’s financial woes.
“This was a very difficult decision for Ms. Braxton. However, after months of trying to work out an acceptable arrangement with her principal creditors, she determined that the only way to assure that she could meet her tax obligations and provide for her two small children was to commence these bankruptcy cases,” Grassgreen said.
In 1998, Braxton previously filed for bankruptcy. In March, the singer was hit with a $396,000 federal tax lien.
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