Grammy Award winning singer, Toni Braxton, has filed for bankruptcy.
The filing occurred on September 30, 2010 and bears Docket Number 10-51909. The bankruptcy was filed in the Central District of California Bankruptcy Court located in Los Angeles.
Ms. Braxton’s has filed a Chapter 7 bankruptcy, which is also frequently referred to as a “Fresh Start” bankruptcy, since the debtor discharges her debts and starts over.
Ms. Braxton previously filed for bankruptcy in 1998. (Docket Number 98-12646, Central District of California Bankruptcy Court).
Reports are that the bankruptcy is the result of health problems that caused Ms. Braxton to be unable to honor a contract to perform in a Las Vegas show, coupled with her insurers refusal to cover the loss, alleging that she had failed to disclose a pre-existing heart condition to the insurers.
Health problems can be a direct or indirect reason that is often listed as a major reason why people file for bankruptcy.
by Kevin Gipson, New Orleans, Louisiana bankruptcy lawyer.
