Toni Braxton is bankrupt, TMZ says, and the trustee charged with handling her bankruptcy case says the 90s R&B queen fraudulently transferred assets to her husband in a bid to conceal them from creditors.
Bankrupt Toni Braxton filed for bankruptcy protection back in 2010, with an estimated $10 million to $50 million in debts. Before Toni Braxton was bankrupt, she was flying high as a singer in the R&B genre, with the bills to match her mega-celebrity status in the music world.
But the 2010s ushered in a new era of financial distress for bankrupt Toni Braxton, it would appear, and now the gossip site says that a trustee in Braxton’s case has said the singer concealed funds set for disbursement to creditors by transferring them to her spouse, from whom she is currently separated:
“Toni Braxton fraudulently transferred $53,490 to her estranged husband in order to avoid paying back creditors in her bankruptcy case — so says the trustee of Toni’s bankruptcy estate … According to new docs filed in Toni’s ongoing bankruptcy case, Toni’s estranged husband Keri Lewis received the 5-figure sum after Toni’s money was already earmarked to repay creditors.”
A rep for Toni Braxton commented on the allegation, telling TMZ the bankrupt singer handled all bankruptcy related transactions in an above-board fashion, saying:
“All of the payments made to Lewis prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business.”
Toni Braxton’s rep added that the singer was willing to prove to the trustee that the allegation does not bear out.