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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

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She has money...she isnt

She has money...she isnt broke. Tamar has money as well her husband has been a very successful producer,writer, and record executive for over 20 years. They can afford the lifestyle she lives. she didnt know she had lupus when she signed to do vegas and didnt plan on not being able to perform. After her bankruptcy she put out another successful album for laface The Heat(5m) as well as More Than A Woman(1m). She has also done a tour and two broadway show runs a long with vegas. She as well as TLC/ Usher eventually were paid an undisclosed sum of money from Arista. So she still is very wealthy just not as wealthy as she should be with the amount of success she has had
Anonymous's picture

She has money...she isnt

She has money...she isnt broke. Tamar has money as well her husband has been a very successful producer,writer, and record executive for over 20 years. They can afford the lifestyle she lives. she didnt know she had lupus when she signed to do vegas and didnt plan on not being able to perform. After her bankruptcy she put out another successful album for laface The Heat(5m) as well as More Than A Woman(1m). She has also done a tour and two broadway show runs a long with vegas. She as well as TLC/ Usher eventually were paid an undisclosed sum of money from Arista. So she still is very wealthy just not as wealthy as she should be with the amount of success she has had
Anonymous's picture

what is up with that stupid

what is up with that stupid hand pose I hope it means something because it looks foolish
Anonymous's picture

she is saying artists get 4

she is saying artists get 4 to 7 cents on a dollar for each album sold and then they still have to pay 20 million back to the label for creating, promoting the album etc. What on earth is the remaining 93 to 96 cents on a dollar used for?
Anonymous's picture

7 cents on the dollar for 40

7 cents on the dollar for 40 million copies still makes you 28 million dollars at least, take 20 from that and you have 8 million...some people dont even see 1 million in a life time...we should learn to make do
100% bajan's picture

Producers, writers,

Producers, writers, distribution, advertising and anything else that goes into making an album.
NekeT's picture

For those who says she's

For those who says she's lying maybe u should look up the medical information behind lupus because if she is she must paid close attention to the details because she's spot on about the affects of lupus...Secondly even if she was flossing who gives a fuck she worked that damn stage, sung those damn songs not ya'll so if she wanta blow it shit she got the right to...Black people are a bunch of motherfucking haters...Damn...Get it how you wanta Toni! * 3 snaps*
Anonymous's picture

She didn't know enough to

She didn't know enough to know what kind of Lupus she has, cuz discoid ain't it. lol. That type only affects the skin. She must have progressed to systemic lupus if it lead to organ effects. But, yea, other than that she's right.
J. Mo's picture

Yes, she did that talking

Yes, she did that talking bout discloid lupus when its as u said of the skin. She didn't even research that lie cause one is far more fatal than the other and u can't mistake d for s. Come on!
Dreil M's picture

Yes, she did that talking

Yes, she did that talking bout discloid lupus when its as u said of the skin. She didn't even research that lie cause one is far more fatal than the other and u can't mistake d for s. Come on!
Dreil M's picture

Yes, she did that talking

Yes, she did that talking bout discloid lupus when its as u said of the skin. She didn't even research that lie cause one is far more fatal than the other and u can't mistake d for s. Come on!
Dreil M's picture

Yes, she did that talking

Yes, she did that talking bout discloid lupus when its as u said of the skin. She didn't even research that lie cause one is far more fatal than the other and u can't mistake d for s. Come on!
Dreil M's picture

jinkies!!!!

jinkies!!!!
keepn it 100's picture

I admire the fact that she's

I admire the fact that she's talking openly about this. But it really makes you wonder about those artists who are flossing - clearly a whole lot of stuff is on credit.
Bubbles's picture

She need to stop lying. Toni

She need to stop lying. Toni said on Oprah that she was flossing. Her azz never paid any of her medical bills, she needs to quit.
Luv Ms Berry's picture

Why are ppl shocked??? I

Why are ppl shocked??? I mean it's not like Toni was a flossing with cars and houses. IMO she doesn't have to explain ish, the record business ain't nothing but a hustle and the artists are the suckers.
BadGirl23's picture

I would have never guessed

I would have never guessed that was the reason Toni went bankrupt but I hope she is in better health now. Check out more on the Braxtons at www.celebvixen.com.
Candice's picture

Aside from that tidbit...I

Aside from that tidbit...I can't stand her silly poses!
Anonymous's picture

cosign..

cosign..
Anonymous's picture

She SOLD 40 MILLION RECORDS

She SOLD 40 MILLION RECORDS and ONLY COLLECTED ABOUT $2000 IN ROYALTIES! That's freaking robbery! Damn Babyface and LA Reid y'all were black record slave masters! smfh
speaking of this ish....'s picture

Yeah, that's why they say if

Yeah, that's why they say if you are going to be in the entertainment business, go behind the scenes. That's why it's good to produce your own records, why people strive for that writing credit. That's where the money is.
Shy's picture

(sigh) @ people. I wish she

(sigh) @ people. I wish she didn't have to explain herself. Afterall she is human and she's in a predicament as most other Americans and internationals. I just wish her the best.
Lacey's picture

WOWZERS!!

WOWZERS!!
Anonymous's picture

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