What Can Toni Braxton’s Bankruptcy Tell Us About Chapter 7 Bankruptcy?

Famous singer Toni Braxton recently concluded her bankruptcy, which allowed her to avoid paying Sony $13 million. In addition to Sony, Braxton owed Atlantic Records $1 million, the Internal Revenue Service $335,000 and an additional $1.4 million to Wells Fargo. In 2010, Braxton filed for bankruptcy, and for almost five years while her case was pending, her trustee was busy assessing and selling off her assets to pay back creditors.

Among the assets auctioned off by the trustee were a 1995 Porsche, jewelry, a piano, paintings and royalty rights to many of her songs. In total, about $1 million in assets were abandoned thanks to the help of Braxton’s trustee. Braxton abandoned $1 million in assets to escape paying creditors a total of $16 million! After the bankruptcy case concluded, Braxton’s creditors were paid $90,573.

Braxton has told the press that she was pushed into bankruptcy after suffering from health issues and cancelling several shows.

What Are The Duties Of A Trustee During Chapter 7 Bankruptcy?

This story highlights how useful a trustee can be during Chapter 7 bankruptcy. In Chapter 7 bankruptcy, a trustee is appointed to oversee the case.

Trustees can have multiple responsibilities, but as we saw in the case of Toni Braxton, they have the duty of liquidating nonexempt assets during Chapter 7 bankruptcy. In Chapter 7 bankruptcy, a trustee will assess the value of each nonexempt asset and auction it off to pay creditors.

There are additional options people can use to escape enormous amounts of debt. By contacting a bankruptcy attorney, people weighed down by debt can discover the best available options to recover financially.

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The Sader Law Firm – Kansas City Bankruptcy Attorneys