Towanda Braxton, best known for her role on Braxton Family Values, has had her bankruptcy case dismissed by federal judges. According to court documents obtained by Radar Online, it was thrown out after officials found out that she severely underrepresented how much money she possessed. Although Braxton filed for Chapter 7 bankruptcy four years ago, she’s outlined her finances to be in dire condition over the past few years.
The court documents stated, “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.” Additionally, she listed her significant assets as her own Georgia home and minimal other material items to come out to less than $300,000 – which is only half the amount as her proposed debt. She outlined the debts in the court documents as coming from a $417,000 mortgage, a large personal loan to her sister, Tamar, schooling, medical bills, and finally, almost $76,000 to her former landlord.
The landlord, Michael Wagoner, filed an opposing lawsuit against Braxton to argue that she should still have to pay him. Wagoner 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.”
The court agreed, and the motion read, “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,” It was determined that she “fraudulently under-scheduled the value of her residence” and that it was actually worth $450,000. On top of that. There were allegedly other discrepancies found about Braxton’s initial claims.
Towanda has denied these claims.
