In our last post, we noted that singer Toni Braxton recently secured an order from the U.S. Bankruptcy Court in Los Angeles discharging her from certain debts. The order was a victory for the financially troubles artist, who is, interestingly enough in her second bankruptcy. Braxton's filed for bankruptcy the first time around back in 1998 during a dispute with her record label.

Braxton's financial troubles have been in the news since last fall, when she faced a potential foreclosure on her Los Angeles home after defaulting on her mortgage payments. Since that time, Braxton separated from her husband and her career has hit a sticky point.

According to the Wall Street Journal, the recent order for discharge of certain of Braxton's debts wouldn't have been granted if she had filed her bankruptcy petition earlier, as a Chapter 7 debtor cannot receive discharge with an eight year time period. That would have made a discharge unavailable to her prior to 2006.

Chapter 7 bankruptcy, which allows individuals to liquidate debts and get a "fresh start," allows individuals to keep certain exempt property. The value of property allowed to be discharged differs from state to state. Any other assets are sold to repay creditors. When an individual files for chapter 7 bankruptcy, all debts are listed, even ones that are potentially non-dischargeable.

Chapter 7 bankruptcy will stay on an individual's credit report for 10 years after the filing date, as opposed to chapter 13 bankruptcy, which remains on one's credit for 7 years.

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