Toni Braxton has finally wiped the slate clean on her bankruptcy case.
TMZ reported that the singer filed for bankruptcy for the second time back in 2010, with debts stacked as high as $50,000,000. It “only” cost her $150,000 to settle the case.
The bankruptcy documents stated that Braxton made a deal with the trustee to buy back some of her personal property that was lost. She was to pay $5,000/month for 15 months with a final payment of $50,000. Braxton managed to make all of her payments except for the final one.
On top of that, Braxton received compensation for a series of overseas performances, which took place after she filed for bankruptcy. Braxton felt that legally she was entitled to keep the money, because it was issued after the claim.
But the trustee argued against Braxton; stating that although she didn’t get the money from the performances until after the Chapter 7 filing, the funds were put into escrow beforehand and therefore she should have to pay up.
Last week however, she and the trustee came to an agreement, with Toni Braxton agreeing to pay the $50,000 she owed for the property and $100,000 from the performance. The agreement also allowed her to buy back the copyright for a number of her songs for $20,000. They’re set to go to auction, in hopes she won’t be outbid.
The agreement won’t be finalized until the judge signs off on it, but it appears Toni Braxton can finally put the bankruptcy case behind her.
