Toni Braxton’s second bankruptcy costs Her Record labels $16 million

The trustee in charge of Toni Braxton’s second bankruptcy case has revealed that her former record label, SONY Music, and several other creditors, including Atlantic Records, are owed over $16 million and will not be getting a cent from the music diva.

Braxton, who first went bankrupt in 1996, filed for bankruptcy a second time in 2010 on the grounds that her debts were well beyond the assets she had. While she claimed to have assets worth between $1 million and $10 million, the Grammy Award winner said her total debt was possibly as high as $50 million.

The “Breathe Again” singer explained that she was pushed into bankruptcy by the health issues she had, according to the Jasmine BRAND. These problems, she said, caused her to cancel several of the shows she was slated to have in Las Vegas, leading to her debts piling up.

Braxton owed SONY a whopping $13,608,116 and owed Atlantic Records more than $1 million. She also owed Wells Fargo $1.4 million, the IRS $335,000, and Gwinnett County, GA $39,000 in unpaid taxes. The singer had all these debts wiped clean off her slate by the trustee in her second bankruptcy case.

In addition to the already mentioned debts, Braxton will also be free from having to repay huge debts owed to Tiffanys & Co., Neiman Marcus and several law firms she had hired. Debt owed to the talent agency, William Morris, will also be wiped off Braxton’s slate.

The decision to clear these debts follows the completion of the work of the trustee charged with the sale of the singer’s assets. The bankruptcy case had been pending for about five years while the trustee tried to dispose of the assets.

Braxton’s possessions that were sold off by the trustee included her 1995 Porsche, personal jewelry, paintings, a piano and her official web domain. Royalty rights to many of her popular songs were also auctioned off to the highest bidder.

Documents filed in federal court on May 4 showed that her Porsche was sold for $23,000, her personal jewelry for $37,420, and her household goods for $9,000. The singer’s paintings fetched almost $11,500 and the web domain, tonibraxton.com, brought in $1,000.

The trustee stated that Braxton’s assets, worth slightly over $1 million, were abandoned. Of the almost $17 million due to creditors with secured claims, just $90,573 were paid out.

Following the completion of his task, the trustee is requesting the federal judge in charge of the bankruptcy case to close it.

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