Headline Blares “Bankruptcy Toni Braxton Accused of Fraudulently Giving $53k to Husband”

The salacious headlines in TMZ makes it sound like Toni Braxton is accused of something very bad. But don’t get your bankruptcy info from a celebrity website.

In bankruptcy, 11 USC §548 outlines what is a “fraudulent transfer”. While it sounds bad, essentially it means that the debtor gave something to someone else and didn’t get anything in return. After reviewing her bankruptcy schedules, Ms. Braxton did disclose the transfers to her ex-husband. Disclosing the transfers is all that is required under the bankruptcy code. If the trustee wants to get back the transferred money or property, he/she need to sue the receiver, not the debtor.

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