Why Towanda Braxton’s Bankruptcy Was Dismissed
It looks like Braxton Family Values star Towanda Braxton has hundreds of thousands of dollars to pay off amid her bankruptcy filing being dismissed. The middle sister has been under bankruptcy for four years. But a judge has determined that she has been hiding income.
Towanda Braxton filed for bankruptcy in 2018
Several media outlets, including Yahoo News, reported on the reality star’s bankruptcy filing. She filed a Chapter 7 bankruptcy in 2018, just one year after she purchased a new home.
Per the filing, she listed $277,650 in assets – while claiming $547,056.39 in liabilities. Her monthly income was listed at $4,692, while her monthly expenses total $6,020. At the time of the filing, she reportedly had just $150 in the bank.
Some of her debts included $417,715 to a mortgage company, $76k to her former landlord, $982 to Comcast, over a thousand to collection attorneys, $8,480 to Covenant Christian Academy, $6,211.30 in medical bills, $35,000 to her youngest sister Tamar, who gave her a personal loan.
Her income from Braxton Family Values could be seized under bankruptcy to pay off creditors. The show was cancelled in 2020. She was also ordered to take financial literacy classes.
The bankruptcy was dismissed due to alleged fraud
Radar Online reports Braxton has been left to pay off creditors on her own after the star was accused of failing to report income as part of the case. A federal court judge has denied Braxton a discharge of her debt and closed the case. The decision came after a creditor accused her of fraud.
The landlord of her property, Michael Wagoner, filed a separate lawsuit amid her initial bankruptcy demanding her debt to him not be part of the claim. In his court documents, he said that she failed to notify the court about a beauty company, T. Braxton Beauty Company, which she had allegedly funneled money through, which caused a misrepresentation of her income.
The filing noted: “Though Defendant Braxton asserted that she only received $4,692.50 in average income per month in April 2019, the reality is that Ms. Braxton had far more income, which she deposited into bank accounts in the names of T. Braxton Beauty Company, LLC (“TBBC”) and Big Toe, Inc. (“Big Toe”). Defendant Braxton hid hundreds of thousands of dollars in assets in the bank accounts.” A judge agreed and dismissed her bankruptcy altogether.
She reportedly lost her home amid the bankruptcy filing
The Georgia mansion seen on the last few seasons of the reality series was reportedly seized in bankruptcy. Per Radar Online, a company called Rushmore Loan Management asked to seize the home and sell it to the highest bidder. In their motion, the company alleged Braxton hadn’t made consistent payments.
Braxton reportedly owed a total of $460,229.52 as of Jan. 2021. The company estimated the Georgia mansion is worth $275,000. A federal court judge granted their request for the property to be seized.
Showbiz reached out to Braxton’s camp for comment on the matter. At the time this article was published, Braxton nor her team responded.
