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California bankruptcy can offer financial relief for celebrities too

Celebrities are not immune to the financial challenges that many in California have faced in recent years. With sinking home values and a slowing economy, those in many different industries and of different socioeconomic levels have suffered and some have taken on large amounts of personal debts. For singer and actress Toni Braxton, the amount of debt that she owed recently became so overwhelming that she filed for a personal bankruptcy.

Braxton -- who starred recently in the reality television show Braxton Family Values -- filed for chapter 7 bankruptcy for the second time. Reports indicate that the first filing occurred in 1998. The more current filing may be due in part to the fact that she suffered at least two medical illnesses in the recent past. In addition, she may have suffered other financial troubles that were not published in initial reports.

In her personal bankruptcy petition, Braxton asserted that she owed several high-end retailers large amounts of money. The exact amount could not be determined and the filing noted that the singer and actress owed somewhere between $10 and $50 million to creditors. The creditor list also included the Internal Revenue Service, who had placed a lien on her home last year.

Filing for a personal bankruptcy can be difficult for many people. However, the protections that are offered by such an action can help a person who finds that they are struggling under the burden of debt. This help can include the financial relief felt after unsecured debts are discharged or assets sold to satisfy secured debt; an action which can help an individual in California begin a fresh financial future.

Source: thecelebritycafe.com, "Toni Braxton facing financial troubles and bankruptcy again," Kristen Porricelli, Nov. 11, 2012

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