“Braxton Family Values” star and singer Towanda Braxton is in a world of financial trouble after a federal judge recently dismissed her bankruptcy case following a finding that the 49-year-old actress neglected to report the scope of her finances as part of her bankruptcy agreement.
According to court documents filed last month and obtained by RadarOnline, the judgment comes nearly four years after the reality star filed for Chapter 7 bankruptcy. In 2019, Braxton claimed that she had over $6,000 in monthly bills with a monthly income of only $4,692. During the filing, Braxton stated she only had $150 in her checking account and had completely wiped out her savings.
The “Blinding Lights” actress told the court she had only $277,650 in assets, which included a recently purchased home in Georgia worth $275,000, $1,500 in household goods, and another $1,000 in clothes.
However, her debt was nearly twice as much, specifically $547,056.39. The breakdown included $417,000 owed on her mortgage, $35,000 to her sister, Grammy Award-nominated singer Tamar Braxton, for a personal loan, $8,000 to an undisclosed Christian school, another $6,000 in medical bills, and $76,000 owed to her former landlord Michael Wagoner.
The property owner filed a separate lawsuit in connection with the star’s bankruptcy case, demanding that her debt to him not be erased. Wagoner alleged that Braxton “completely failed to disclose and fraudulently concealed her 100% shareholder interest in Big Toe, Inc., a company Defendant Braxton set up to conceal her entertainment income” and avoid paying creditors like himself.
“Though Defendant Braxton asserted that she only received $4,692.50 in average income per month in April 2019, the reality is that Ms. Braxton had far more income, which she deposited into bank accounts in the names of T. Braxton Beauty Company, LLC (“TBBC”) and Big Toe, Inc. (“Big Toe”). Defendant Braxton hid hundreds of thousands of dollars in assets in the bank accounts,” the outlet reported.
Braxton was said to have “fraudulently under-scheduled the value of her residence” in the petition listing it as worth $275k. The singer later admitted it was appraised at $450k. And although she claimed she didn’t own a vehicle, Wagoner pointed to a noted $160 per month in gas expenses.
The reality star isn’t the only Braxton member who faced financial struggles. In 1998, older sister Toni Braxton infamously filed for Chapter 7 bankruptcy after bad business dealings and admittedly overindulging in her newfound riches. Although she recovered, in 2010, she filed again.
