Toni Braxton announced Thursday that she has huge debts – almost $50 million – and has initiated legal proceedings asking to be placed under the bankruptcy law.
R&B singer opened the proceedings with a California state court, arguing that her debts, consisting of unpaid bills and outstanding loans, rose at an amount between $10 million and $50 million.
Toni Braxton says she couldn’t pay these debts, because her entire fortune was valued at an amount between one million dollars and 10 million dollars.
According to the U.S. justice official documents, the singer said that on her big creditors list are: AT&T, The Four Seasons Hotels, Cedars-Sinai Medical Center, Various medical bills, DirecTV, Neiman Marcus, The William Morris Agency, Tiffany & Co., Orkin Pest Control, The Internal Revenue Service, BMW Financial Services, ADT Security, American Express, Flamingo Las Vegas, Mesa Air Conditioning, Nevada Power Company, Screen Actors Guild, The Westin, Wells Fargo Bank.
Braxton also claims she may owe money to the City of L.A. Parking Violations Bureau and the DMV in both California and Nevada.
Singer Toni Braxton has once asked to be placed under the protection of U.S. bankruptcy law in 1998, and in March 2010 has been sued for nonpayment of federal taxes totaling $400,000.
Recently, TMZ found out that Toni Braxton took out “show insurance” through Lloyd’s of London for her act at the Flamingo Las Vegas Hotel & Casino back in 2006.
But when Toni’s heart condition started to act up – in the middle of the show’s run – she had to pull the plug, but she was still on the hook to the hotel for big bucks.
Toni expected Lloyd’s to cover the loss but Lloyd’s didn’t, arguing Toni had an undisclosed, preexisting medical condition, rendering the policy void.
In the end, Toni had to absorb a huge loss, which the relative claims sent her on a downward financial spiral.