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Pop star discusses money issues that led to bankruptcy

Circumstances outside of an individual's control can often lead to financial struggles. Combined with poor money management, it can be a recipe for difficulties that might lead to things like foreclosure. Bankruptcy can be a way for Tennessee residents to hit reset so that an individual can adopt new ways and recover their financial future.

Singer Toni Braxton recently opened up about lessons she has learned after going through bankruptcy. The recording artist discussed her financial issues in an interview on the television show "20/20."

Her troubles date back to 1998. During that year, she filed for bankruptcy, even though she was doing well on the charts and had sold $170 million worth of albums. Braxton explained that she didn't receive a large percentage of that money. Rather, her label, LaFace Records, took a major cut and only advanced her about $1 million on each album. However, Braxton admitted that her financial issues were caused partially by poor money management.

Health issues in 2010 resulted in a replay of the singer's financial woes. After being diagnosed with lupus, Braxton canceled several self-financed shows in Las Vegas. This left her with debt that she reports may be as high as $50 million. She filed for Chapter 7 bankruptcy.

The artist's mansion in Georgia was recently sold under foreclosure. Braxton states that she has learned valuable lessons about monitoring spending and staying on a budget.

Braxton's case shows that anyone could end up in tough financial straits. Regardless of income, it is important for individuals to educate themselves on their situations and options. It may be that by turning to bankruptcy and sound money management, a road to financial stability can be found.

Source: WDEF-TV, "Braxton talks about bankruptcy," WENN.com, Dec. 3, 2012

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