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Helping good people through bad times

Famous singer forced to file personal bankruptcy a second time

In this struggling economy, Chattanooga residents surely recognize that almost everyone is feeling pinched by financial stress. If someone hits a hard spot with finances, such as rising medical bills or costs of a business, they may have no choice but to file a personal bankruptcy, even after earning millions.

This was the case for Toni Braxton, a famous singer who had to file a chapter 7 bankruptcy. She was battling lupus and her insurance company allegedly canceled her coverage for the medical bills. Due to her battle with lupus, she was forced to cancel some shows. Then she faced mounting costs from the canceled performances and was sued for some of those costs. Finally, she was unable to take it anymore and ended up filing a personal bankruptcy for a second time.

This is not a story about a young starlet who cannot manage her finances. Instead, it should be a cautionary tale to anyone who is struggling with medical expenses, credit card debt and any unexpected life changes, such as illness or unemployment. No matter how the debt was acquired, if someone is trying to obtain debt relief, bankruptcy is one of the best and most straightforward ways to find it. Filing for Chapter 7 bankruptcy in particular is one way to eliminate debt because at the end there is a complete discharge of most debt, including medical bills, credit card bills and most deficiency judgments for property that has been reposed.

Dealing with financial challenges in this struggling economy is no easy task for anyone, even if a celebrity. For the vast majority of people who are looking for debt relief, filing for bankruptcy is one avenue that could be very helpful in finally getting a fresh start.

Source: Examiner, "Toni Braxton blames insurance failure for bankruptcy, near divorce," Njai Joszor, Oct. 30, 2012

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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