‘Braxton Family Values’ Star Towanda’s Bankruptcy Thrown Out After Creditor Accuses Her Of Hiding Income
Dec. 1 2022, Published 6:00 p.m. ET
A federal court judge has dismissed Braxton Family Values star Towanda Braxton’s bankruptcy and left the reality star to fight off creditors on her own — after the star was accused of failing to report income as part of the case, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, a federal court judge has denied Braxton a discharge of her debt and closed the case. The decision came after a creditor accused Braxton of fraud.
Toni & Towanda Braxton
In 2019, Braxton filed for Chapter 7 bankruptcy listing $277,650 in assets and $547,056.39 in liabilities. She said her monthly income was $4,692 but her expenses totaled $6,020. At the time, she said she only had $150 in her checking account and her savings were depleted.
Her assets included a recently purchased home in Georgia worth $275k, $1,500 in household goods, and another $1k in clothes. Her debts included $417k owed on her mortgage, $76k to her ex-landlord, $8k to a Christian school, $6k in medical bills, and $35k to her sister Tamar for a personal loan.
The landlord, Michael Wagoner, filed a separate lawsuit as part of the bankruptcy demanding her debt to him not be wiped clean. He accused her of lying about her income and assets to avoid paying creditors like him.
In court documents, he said that Braxton failed to notify the court about a beauty company T. Braxton Beauty Company which she had allegedly funneled money through.
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Braxton denied the allegations of fraud in court.
In a recent motion, Wagoner again accused Braxton of making misrepresentations about her income. He said she “completely failed to disclose and fraudulently concealed her 100% shareholder interest in Big Toe, Inc., a company Defendant Braxton set up to conceal her entertainment income.”
“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,” the motion read.
Further, he said she made misrepresentations about the payment of her personal bills. He said Braxton claimed to pay her $6k+ bills with a mere $4,692 in monthly income.
“To look at her Petition, one would think Defendant Braxton was destitute. The reality, however, was that Defendant Braxton was (and perhaps still is) living a lavish lifestyle, spending approximately $30,000.00 per month,” he said.
Further, they said she failed to mention family and friends paying her other bills.
The landlord said Braxton also “fraudulently under scheduled the value of her residence” in the petition listing it as worth $275k when she later admitted it was appraised at $450k.
In addition, they said Braxton swore she didn’t own a car but pointed to her claiming $160 per month in gas expenses.
The judge sided with the landlord and dismissed the case last month.