In December of last year, we discussed Toni Braxton's intent to keep her Georgia home, even though she had filed for Chapter 7 bankruptcy. Although she lost that home to foreclosure earlier this year, she has recently gained a victory in her bankruptcy case with the discharge of some of her outstanding debts.

Toni Braxton had filed her first bankruptcy case in 1998. Now, more than eight years later, Toni Braxton completed a second Chapter 7 bankruptcy filing in September 2010. This is important because under bankruptcy law, a second discharge is not allowed within eight years of the first discharge.

At the time she filed this latest Chapter 7 case, the Grammy-winning singer reported $1.6 million in assets, but $18.3 million in debts. Her accumulated debts include royalties amounting to $14 million to Arista record label and $2 million to Atlantic record label. She also owes $39,000 in property taxes on her Georgia home.

Recently, a bankruptcy court judge discharged certain unspecified debts in her Chapter 7 bankruptcy case. In general, most debts owed when the bankruptcy case is filed are dischargeable in a Chapter 7 bankruptcy. However, some debts, such as taxes, are not.

This recent discharge, however, does not end the bankruptcy proceeding. Still undetermined is how much Toni Braxton will end up paying her creditors.

For now, she is required to make $5,000 payments each month for the next 15 months towards her bankruptcy estate. In doing so, she is able to keep her household goods, such as her six Grammy awards, furniture, clothing, books, jewelry, a piano and her Porsche.

Source: The Wall Street Journal, "Toni Braxton Scores Bankruptcy Victory," Jacqueline Palank, Aug. 30, 2011