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BANKRUPTCY FILES: Toni Braxton Reveals What She REALLY Spent All Her Money On

Toni Braxton has seen some serious financial woes over the past few years.  And as she prepares for tonight's debut of her new show Braxton Family Values, she revealed to BlackEnterprise.com what she really spent all her money on.

 

Deets when you read on....

Toni wants to clear up some misconceptions as to why she owes such much money to the IRS and where her bankruptcy and money woes really stem from.  She talked to BlackEnterprise.com mag about the issues. She says it wasn't necessarily a result of overspending like the media wants you to believe, even though she blames the record industry for making artists repay the extravagant amount of money invested in them by the record label.  But it was due to her bad business deals, her medical bills and chronic health issues.

A few excerpts:

You’ve been candid about your bout with lupus and microvascular angina. Recently, you’ve explained that your money woes are health-related. How has your condition had an adverse effect on your finances?

A lot of people don’t understand what lupus is. I have discoid lupus, the kind that affects your organs. I tell people that if you miss that window for early diagnosis, it can be difficult to diagnose and result in heart disease or attack, which was my case when I developed pericarditis [inflammation of the fibrous sac around the heart]. My body was in a flare of the lupus, which caused my heart condition. I had just signed my contract when I was diagnosed and was forced to cancel my Vegas show because my doctor said it would take a good year before I was in any shape to get through an hour and a half performance. I was planning a tour and I had to get out of all of those contracts. Because I tied my money to brokering the [Vegas] deal, I was forced to file for a business bankruptcy to protect myself against people and vendors suing me. It was not because I was overspending or anything I did personally with my finances.

Is it true you will have to be on medication for the rest of you life?

Yes, chronic medication. When you see me looking chunky, it’s because of the steroid injections I receive which make me to appear bloated.

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.

Interesting insight.  Your thoughts?

Source

Comments

WANT YOUR OWN AVATAR? GET IT HERE.

To those who thinks this only

To those who thinks this only happens to Black folk look up Celebrities that owe the IRS or file bankrupty, it's not only Black folks sadly Blacks folks are the only ones that get reported on
I'mThatDude's picture

And she'll probably file for

And she'll probably file for bankruptcy again in the year 2019. You guys are far to unsophisticated to understand how business people really use bankruptcy. For further education on rich folks filing bankruptcy read up on Donald Trump.
Anonymous's picture

Hello, it's Toni. I am

Hello, it's Toni. I am thankful to be alive and well and in high spirits. People judge but I appreciate my fans. I work, all the time. this is petty, private and you need to get over it. I did.
Anonymous's picture

I don't believe you are the

I don't believe you are the real Toni. She would never use the rhetoric that you employed. You are tactless and a poser. Don't do this again.
Anonymous's picture

That pose is "supposed" to

That pose is "supposed" to come off like Eva's ANTM photo with the spider. Verdict: fail.
Anonymous's picture

That is NOT a spider pose but

That is NOT a spider pose but a VERY satanic (ONE EYE) illuminati gesture. The devil has her RIGHT where he wants her and she is too blind to see! When you trying to make it for the world, you will lose like so many other artist. She is used up and left with nothing. She needs to stop posing and representing the devil and start using her talent for the most high!
Anonymous's picture

Your mama is the devil.

Your mama is the devil.
Anonymous's picture

imo...that picture is a hot

imo...that picture is a hot mess. who poses like that? not cute
Anonymous's picture

Ummm sorry but Toni could

Ummm sorry but Toni could have gotten individual coverage and been a little better off. There are no more lifetime maximums so as long as she satisfied the deductible and maximum out of pocket expenses, any expenses thereafter would of been covered 100%. Thats with a PPO, POS, HMO. Otherwise, she could of had an indemnity plan just waiting for her to use. Which is for catastrophic events like she has suffered. No way she should be paying for 100% of her medical bills. Since she had a company she should of put it under her business as a small employer. Doesn't pay at all to have money and be uneducated. Buy the information if you have to.
Anonymous's picture

But she's not talking about

But she's not talking about the cost of health insurance or the cost of her medical care here. She incurred the bankruptcy due to the fact that she could not honor her contracts for her show because she needed time to recuperate from her illness. They don't just rip up your contracts when you have to back out of that type of a show, they had already spent money on prepping for it so creditors would have sought to recover some of that.
cleojonz's picture

I see a lot of people

I see a lot of people speaking on health insurance. Health insurance only covers a portion of your cost, you are responsible for the rest. You also have to pay a certain amount of a deductible before they will cover medications and certain doctor visits. My job pays for my health insurance which is great but I had a baby 4 months ago and I have to pay 20% of what the insurance company didn't cover which is well over $4,000. So please stop speaking as if health insurance covers 100% of your bill because it doesn't. It also depends on the policy you have purchased. Toni may be better off paying her own bills.
Anonymous's picture

Damn Toni that's messed up, I

Damn Toni that's messed up, I see y she has the show($$$$$$) btw I HATE,HATE,HATE her new nose. I do not understand y black folks mess with their noses. B proud of ur blackness. Now if you had KRS 1 nose I'd see y(lol) just jk
K's picture

I THANK GOD EVERYDAY...I AM

I THANK GOD EVERYDAY...I AM BROKE BUT I AM NOT SICK THANK YOU GOD! Toni and T-bone of Tlc's health have been thru alot........!!
Anonymous's picture

L.A. Reid and Baby Face

L.A. Reid and Baby Face should be ashamed of themselves. They should recompense those artists out of moral obligation if not legal. That is soooooo wrong. Toni and TLC put their record label on the map even though Baby Face was already singing at that time. I believe her. To take an artist's dream and use them like that is inexcusable. I love you Toni, but if you are going to do the Eva pose, get a spider and some diamonds girl.
What?'s picture

I wish Toni Braxton would

I wish Toni Braxton would take responsibility for her mess-ups and stop blaming everyone else every time. Bottom line is she's a talented, hood rich, lazy diva. Get smart, get health insurance, get healthy, cut expenses, and get to work already!
CaramelDimples's picture

You are an idiot who has no

You are an idiot who has no idea what people with Lupus go through. Save us your idiotic lip service.
Anonymous's picture

We'll I work in the insurance

We'll I work in the insurance field and we hold insurance accounts for major movie studios and record labels and to be honest the insurance these record lables offer are not worth anything so they are better off paying cash anyway, so getting Health Insurance would not solve those issues the illness she has is very very costly and trust me BCBS or any other insurance companies are only going to cover a small amount,
Corry's picture

I just don't know why she

I just don't know why she chose to make that Eva Pigford (from ANTM) pose.....
IMO's picture

When Toni B. was on Oprah

When Toni B. was on Oprah after the first banruptcy, she was the one telling about all the extravagant purchases, like the Gucci flatware and such. Those were her words. So which is the truth? The contract with LaFace was awful, but she should have gotten herself sound advice going forward. That was her biggest financial misstep. And that is something she did personally with her finances. She can't blame any one else for that.
SweetDivaT's picture

She said it is true and she

She said it is true and she did buy $500 flatware but she also said her spending was not crazy like they claim because she also buys cheap stuff like $49 sheets. I don't make half as much as per per year and my sheets are at least $99 so that $49 was being real frugal...read people...read.
Anonymous's picture

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dsdsdsfsd's picture

One of Toni Braxton's BIGGEST

One of Toni Braxton's BIGGEST problems, is she acts first, then thinks later. Every time she makes a mistake, it is usually one that she has made before. The other problem she has is that she is ALWAYS beefing with someone, her record label, her seamstress, etc. She needs to really sit down and say to herself, who am I? What do I want out of this business and how best can I acheive it? She has been in this business 20 years, time to stop blaming others, get the right people around you and if not - educate yourself.
zappy's picture

I take it you know Ms.

I take it you know Ms. Braxton personally...?
Anonymous's picture

I take it you know Ms.

I take it you know Ms. Braxton personally...?
Anonymous's picture

I take it you know Ms.

I take it you know Ms. Braxton personally...?
Anonymous's picture

I take it you know Ms.

I take it you know Ms. Braxton personally...?
Anonymous's picture

I take it you know Ms.

I take it you know Ms. Braxton personally...?
Anonymous's picture

I take it you know Ms.

I take it you know Ms. Braxton personally...?
Anonymous's picture

U are stupid....LOL LOL

U are stupid....LOL LOL
Annoymous Too's picture

Ummm, ok... Why is that this

Ummm, ok... Why is that this doesn't happen to the "other" color artists? Taylor Swift, Katie Perry, Madonna, Carrie Underwood, Lady GAGA???? How come most of "our people" don't get solid financial advisors?
mochamimi's picture

Didn't you READ?! She said

Didn't you READ?! She said that the industry is DIFFERENT NOW, HENCE THE REASON IT DOESN'T HAPPEN WITH THESE NEWER ARTISTS. I guess that's the other problem "our people" aka YOU, have. They tend to skip over the important details!
Anonymous's picture

Also, to add on to my other

Also, to add on to my other comment... Toni said she chose to use her own money to fund her tour in Vegas... not always a bad idea if, AND I STRESS IF, you have a nice cushion to fall back on. Jay-Z can fund his own tour if he wanted to. Diddy could, and 50 Cent could... Toni, not so much. She's semi-rich, far from being wealthy. With her kind of money it's like shooting craps... chance for failure and success are pretty much equal... she just caught snake eyes LOL.
Anonymous's picture

Every single artist you

Every single artist you mentioned is hot right now (with the exception of Madonna). They have all been out only a few years... like Tony said the industry has changed a lot. Laws regarding loyalties and the types of STANDARD/MINIMUM contracts that record company's have to provide an artist have changed A LOT. Tony was big in the 90s when laws were not really there to support the artist, but the record company... Rich helping the Rich I guess. LaFace f*cked over a lot of their artists.... as for Madonna, the only one you mentioned with a long career... well, she's Madonna LOL. Married to Guy Richie for years, movies, musicals, Global Superstar.... pretty self-explanatory.
Anonymous's picture

I believe her.

I believe her.
Starla's picture

Ghettooooooo......phony Toni

Ghettooooooo......phony Toni has zero class
Anonymous's picture

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sdfsds's picture

Dang! Those Music Biz folks

Dang! Those Music Biz folks are real Sharks. Looks like Baby Face is just another crook too. All the Best to U Toni
Number 33's picture

Toni's hair looks nice. Isn't

Toni's hair looks nice. Isn't that the pose that Eva did on America's Next top Model, when she had the spider or tarantula on her hand?
Catherine's picture

i like toni and i wish her

i like toni and i wish her well its sad that she is sick but she looks great i just hope her health will get better cant wait to see the show!!
Anonymous's picture

TONI SHOULD JUST LEASE

TONI SHOULD JUST LEASE HERSELF AND HER KIDS A 3 BEDROOM APT OR A 3 BEDROOM HOME AND CALL IT A DAY.............THE HOMES ARE NOT WORKING FOR HER.......THEY KEEP GETTING FORECLOSED ON.........TIME TO RETHINK RENTING AGAIN.
JUST SAYIN's picture

what difference does it makes

what difference does it makes if she rents, she still has to pay for a place to stay, why not let it be her own home that she can build equity in.. you must live in an apartment.. there is nothing like owning your own home sweetheart
Anonymous's picture

Whats up with those poses

Whats up with those poses man. Black women please don't make that shit a trend
LetsGetItt's picture

If you went bankrupt once,

If you went bankrupt once, then you should learn from that and not make the same mistakes...but to go through it a second time...I dunno, I have to question Toni's judgement. She clearly needs more people.
Anonymous's picture

two words - health insurance.

two words - health insurance. quality mentors, advisors, and your own financial education from books available on bookshelves would really help a lot of artists.
Anonymous's picture

It sounds familiar to

It sounds familiar to Sinbad's story. For her if you are not onstage, you don't get paid. There is no " sick leave". Like Sinbad, Ms. Braxton's name was bigger than her money. Also most artist, even one's with hits, make about the same as a teacher, over a 10 year period.
DrNat's picture

OK the chick is Getting on my

OK the chick is Getting on my Nerves with this Finger over the Eye shit!..It's 15min is OVA!!
Yeah Really  's picture

Let this be a lesson about

Let this be a lesson about the record industry: if you are not involved in creating your product (songs, raps, beats, etc.) - you are already at a loss BEFORE your song is shopped around to radio stations. Then "living the life" before you get your first check puts you further in debt. If your album doesn't sell well...you will be back to your former hustle with only a few memories. GET KNOWLEDGE ABOUT EVERYTHING YOU DO!!!
Anonymous's picture

Toni, I'm sorry but what you

Toni, I'm sorry but what you are saying makes no sense, you only collected $2MM.....really??? I don't like it when people take a very serious medical condition and use that to conceal the truth. I know someone with Lupus and, yes, it is a very serious condition, however, it doesn't explain why you and all your sisters are wearing Louboutins, YSL, etc. shoes all the time. I also watched when she told Oprah that she was not frugal with her money and spent it all on silly things. So, I would respect her more if she told the truth, that she severely mismanaged her money, and her condition is not the cause of the reason why she filed for bankruptcy.
Rachel's picture

$2,000 - correction. Next

$2,000 - correction. Next thing she is going to tell us is that she is doing the reality tv show for free.
Rachel's picture

I don't believe anything she

I don't believe anything she saids...She Always came across as one who Fabricates alot!
Anonymous's picture

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