Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Can I get credit after filing personal bankruptcy?”
In a case that proves just how quickly some people can recover from a personal bankruptcy filing, noted R&B singer Toni Braxton appears to have bounced back after her bankruptcy filing less than one year ago and is now in the market for multi-million dollar real estate.
According to realtors in California, Braxton has just purchased a mansion in the Calabasas neighborhood of Los Angeles for $3 million. The house, which has four bedrooms and 5 baths and measures over 5,000 square feet, is just down the street from Justin Bieber. The home is an exclusive gated community known as The Oaks and was recently remodeled.
The purchase has come as a surprise to many given that Braxton was discharged from her recent bankruptcy only last year and never managed to repay a significant amount of her creditors. Some credit her remarkable turnaround to the success of her reality show, “Braxton Family Values,” which is currently on its third season.
Braxton filed for Chapter 7 bankruptcy protection back in 2010 and listed her liabilities at between $1,000,000 and $50,000,000. The bankruptcy trustee agreed to a payment arrangement whereby Braxton paid $5,000 per month for 15 months towards her massive debts and then made a final payment of $50,000.
Braxton’s bankruptcy filing was the second in her career, first filing in 1998. Braxton says that though her breakout hit record grossed $170 million in global sales, she only received a royalty check for $2,000. The reason is that her contact required her to repay the record label for a range of expenses including promotion, travel, studio time and many other costly expenditures. The label advanced Braxton millions of dollars that she was then required to repay, a system that she said led to increasing levels of debt. Braxton also says that an interest in home décor contributed to the bankruptcy filing. She admits to buying Faberge eggs, expensive sheets and Tiffany flatware.
In her recent case, Braxton says health problems were the leading cause. Braxton had put up the money to finance her own Las Vegas show before being diagnosed with a heart condition and, eventually, lupus. Both kept her off the stage for years and led to financial devastation a second time around. Thankfully, Braxton managed to work out a good arrangement with the bankruptcy trustee and was able to buy back some personal property as well as the copyright to several of her biggest hits. The personal effects cost Braxton around $100,000 and the songs cost her $20,000.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
About The Author:
Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues. Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree. After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations. He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte. In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.
“Toni Braxton Buys $3 Million Mansion 6 Months After Bankruptcy,” published at TMZ.com.
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