TMZ is reporting that pop singer Toni Braxton is being accused of fraudulently transferring $53,490 to her estranged husband to avoid paying back creditors in her bankruptcy case.
According to TMZ, court documents filed by the trustee in Braxton’s bankruptcy case say that the singer’s estranged husband, Keri Lewis, received money from Braxton after agreements were made to pay back her creditors.
In 2010, Braxton filed for Chapter 7 bankruptcy, owing between between $10 million and $50 million in debts. A representative for Braxton told TMZ, “All of the payments made to Lewis prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business.”
It will be interesting to see what happens in Braxton’s case. You should never transfer money to friends or relatives prior to a bankruptcy. A trustee can sue the relative to collect the money and disburse it among your creditors. Lawsuits can occur even if money is transferred without an attempt to conceal it. You also risk having your case thrown out of court if you fail to provide documentation that includes proof of money transfers.
This was the second bankruptcy for Braxton, who also filed for Chapter 7 bankruptcy in 1998.
Talk to an attorney about your plans. If you have issues with mounting debt, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd– Washington DC and Maryland bankruptcy attorney