Toni Braxton is a knockout!  Very beautiful, very talented and, oh yes, over $50 Million in debt.  Ouch!

Toni is not the first celebrity to seek the relief of the bankruptcy courts.  It seems that even if you make what most of us would consider “mega-money” you can even out-spend that.  Based upon published reports it appears that Ms. Braxton owes tax debts as well as substantial secured loans.  Although she listed debts of over $50 Million, her assets are valued at up to $10 Million.

This is the second case for Ms. Braxton.  In 1998 she filed bankruptcy but apparently was unable to manage her income, expenses and investments since then.

Toni was forced to face the same decision that many folks have to face:  mounting debt balanced against insufficient income.  No doubt the numbers with her have more zeros.  But the problem is exactly the same.

So Toni did what I recommend that everyone do:  Get an experienced bankruptcy attorney.  No doubt Toni’s attorney Debra Grassgreen reviewed with her the benefits of filing a bankruptcy and the risks to her family if she didn’t.  Even though Toni probably didn’t receive a free consultation, I offer a free consultation for every bankruptcy client so that I can explain the process and how a bankruptcy can help.  Sometimes it’s not the best choice.  Only an experienced bankruptcy attorney can guide you through the process.

No doubt, Toni Braxton won’t be the last to file bankruptcy.  Did you know the following celebrities have also filed for bankruptcy?

• MC Hammer (remember the balloon pants)
• Burt Reynolds (the first Mr. Dreamy)
• Larry King (King of Suspenders)
• Willie Nelson (owed over $16 Million in taxes)
• Donald Trump (bold, but faced the truth)
• Don Johnson (who can forget Miami Vice)
• Mike Tyson (before the ear)
• Wayne Newton (over $25 Million in debt)

The list goes on.

Here’s the reality. If you consistently spend more than you make, you will end up in a bankruptcy case.  Math doesn’t adjust for celebrities or anyone else.