Toni Braxton Opens Up About 2nd Bankruptcy

Published: Friday 15th Apr 2011 by Sam

R&B legend Toni Braxton is enjoying renewed exposure as of late, thanks largely to her new WeTV series ‘Braxton Family Values’.

It appears the singer is keen to use the platform to shed light on why she filed for bankruptcy for a second time last year – a topic she talked in depth about while plugging the show in Black Enterprise.

Check out what she had to say after the jump. It certainly makes for quite an insightful read…

Via Black Enterprise:

Your first bankruptcy occurred while you were signed to LaFace,but you weren’t able to talk about it. What went wrong?

No I couldn’t [talk about it] because I had a 10-year gag order. After TLC talked publicly about their bankruptcy [the label prohibited] other LaFace artists to talk, but now I can. I sold more than 40 million records, yet my royalty’s were less than $2000 dollars. People don’t understand that this issue went all the way to Congress about bankruptcy. All contracts are null and void except for a recording artist. Can you believe it? But the industry has changed now.

Some reports said that you were overspending and that the result was the financial trouble you experienced. Is that true?

People were reporting things like I bought Gucci flatware. Yes, I treated myself, and it was only $500. If I bought 1000 count sheets, they were from TJ Maxx for about $49, so I wasn’t living extravagantly. Yes, of course I spent money, but when you consider that an artist makes 4 to 7 cents on the dollar for every album sold and they have to pay back $20 million to the label for all the money that was spent to create, promote and sell that album, then, yeah, chances are you’ll end up in a whole lot of debt.

What would you say was the biggest money mistake you’ve ever made?

Tying up my own money for my Vegas show through my new company, Liberty Entertainment. Because of that, I had to file a business and individual bankruptcy. If I had to do it over again, I would get investors. I understand why you do it yourself because of the security; but putting your own money up isn’t [always] the best idea.

Yet another case, point, example, of why folk and certain sects of the media shouldn’t be so quick to comment without knowing the facts. Kudos to Toni for staying strong and pushing on.

Your thoughts?

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  1. THE NAKED TRUTH April 15, 2011

    But if she was shopping at TJ Maxx how does that explain how she owes Tiffany & Co, Neiman Marcus, and other HIGH END retailers?

    Something isn’t adding up here…

    But more power to her for trying to get her life back together.

  2. DestinyBoston April 15, 2011

    on to the…….. Next!!

  3. SparkD April 15, 2011

    If the media can’t criticize NICOLAS CAGE and his HUMONGOUS debts, they should speak on Toni Braxton’s issues. Her first bankruptcy was business, and the second is because she had her personal assets tied up with her business. An illness can make anyone lose income, she wasn’t living like a KING, like KING NICOLAS CAGE.

  4. SparkD April 15, 2011

    Oops…the media SHOULN’T speak on Toni, if they can’t speak on Nicolas Cage.

  5. Teairra April 15, 2011

    love Toni! she is a true icon, she might not be selling records like she used to but.. her time to rise up again will come!

  6. MaZ April 15, 2011

    We all learn from our mistakes. I’m sure she’ll be back stronger than ever, make an another Vegas or Broadway show and a new album.

  7. beestan April 15, 2011

    i loveeee toni…. too bad things didnt go on well 4 her…. first her heart problem, her child with autism and her bankruptsy….he is a strong fighter
    Thank God her voice is still strong and wonderful
    http://www.kelsnetwork.b*******.com

  8. Neickha April 15, 2011

    She looks really pretty!

  9. Robier April 15, 2011

    bankruptcy is a protection and does not mean one is broke.
    people love drama

  10. BOOMBASTIC!!! April 15, 2011

    I sympathize with u for ur health issues, Im dealing with my own. Sorry girl, but one bankruptcy is enough.

  11. Perrylicious April 15, 2011

    flop!

  12. OMG April 15, 2011

    @PERRYLICIOUS

    Toni Braxton’s a legend. Katy who? in two years, your face is expired. Girl bye!

  13. Me April 15, 2011

    damn shame this is happening. this woman’s voice is amazing! she’s like music royalty, but the peasants are the ones making the money. she should not have to stoop to a reality show, to telling people about the details of her finances, etc…

    i wish they would have put beauty and the beast (when she was Belle) on DVD. Even the soundtrack. It’d be so great for little black girls to see. I went to see both of her Broadway shows and this woman’s performances are mesmerizing.

    Music industry….WAKE UP!

  14. Dave April 15, 2011

    The industry is a messed up place

  15. Demi April 15, 2011

    Awww, poor toni! She looks great though!

  16. k€esha April 15, 2011

    yay

  17. ke£sha April 15, 2011

    yay yay

  18. Jasmine April 15, 2011

    I’m glad Toni is opening up about her 2nd bankruptcy. And I’m glad she is pushing on after all of her health problems which lead to her bankruptcy. A lot of people think filling bankrupt means that you are broke. In reality, filing bankrupt means that you get to keep and protect your assets, and after the filing is over any new income that you make is yours too keep without having to pay back creditors.

  19. EVIL April 15, 2011

    @Perrylicious HOW THE F*** CAN U CALL TONI A FLO WHEN SHE SOLD MORE THAN UR FAVE WILL EVER SELL??? Shes a LEGEND Katy perry is a Temp for the pop. Stay commenting on katy’s post & not a legend which u kno nothing about… #GOODBYE

  20. Gucci April 15, 2011

    And Ciara is next

  21. remon April 15, 2011

    hooly fool

  22. Music Industry Sucks April 15, 2011

    thats sad to hear..40mil records and 2,000 dollar royalty checks..wth??

    Walmart Giving Back After Laying Off Over 50,000 People.. $1,000 Giftcards – I Grab 2 of Them..LOL http://goo.gl/g4zvo

  23. derrick April 15, 2011

    love her!

  24. EMOC April 15, 2011

    I miss Toni on the music scene. I was just jammin’ to “Hands Tied”. This industry is so effed up! This woman is an R&B legend whose been in the game going on two decades running. She looks good. Sounds fantastic. I hope she milks this reality show and comes back stronger than ever. We need her back. Love her! #realmusic

  25. lola April 18, 2011

    Jasmine
    What you said is JUST DISGUSTING AND IMMORAL! How dare you think it’s okay to use bankruptcy to protect your assets???? That’s stealing and just pathetic. You owe the creditors money, but then file bankruptcy, ruin your credit, but you could still earn millions of dollars and use cash pay for everything. I swear, there’s some f***** up people in the world. They really need to change the rules for filing bankruptcy. Like, if you start earning a lot of money and get yourself together, that’s when they can go after you to get their money. FYI Toni is f****** broke. I wish you stans would stop acting like she’s only trying to protect her assets.

  26. Islandboy88 February 18, 2012

    You people need an education in finances.

    Bankruptcy does NOT mean that a person is broke. Toni filed bankruptcy to stop all the companies involved with her Las Vegas show from suing her when she fell sick.

    I feel sorry for her. She had to keep her mouth closed for 10 years while people talked trash about her and made up lies about her spending habits. Gag orders should not be allowed in this country. Whatever happened to freedom of speech?

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