If you recall, Teresa and husband Joe Giudice shocked viewers back in 2010 when it was revealed that they filed bankruptcy to the tune of $11 million in debt. Shortly afterwards, the two were accused of bankruptcy fraud by their trustee John Sywilok, who accused them of concealing assets and hiding income. By the way, concealing assets just happens to be a federal crime.
In a move to likely avoid persecution, Joe first withdrew his bankruptcy bid back in September, after pleading the fifth amendment during questioning by the trustee.
Following Joe’s move the Giudices’ lawyer told PEOPLE magazine that Teresa would soon follow, stating she felt “vindicated” to be voluntarily paying her remaining debts rather than go to jail have them discharged in bankruptcy court.
The NJ Star-Ledger is reporting that in addition to withdrawing her bankruptcy, Teresa has also settled the lawsuit by the trustee by acknowledging that she wishes to resolve Sywilok’s proceedings against her “without the need for further inquiry or litigation, and without her making any further admissions.”
Teresa’s attorney Jim Kridel stated back in September that Teresa was now making enough money to pay off her debts, while also adding that most of the debt in the bankruptcy belonged to Joe. Safe to say the system won this go around.
In other RHONJ news, Tre’s sister-in-law Melissa Gorga recently revealed she is now selling T-shirts with some of her catch phrases written on them such as “Thank you Jesus” and “On Display.”
“We are selling a lot of “Thank you Jesus!” shirts of my website this week! Guess its for Christmas gifts! Send pics! Xo, melissagorga.co” tweeted Melissa last week. Pictures of those T-shirts are below!
TELL US – THOUGHTS ON TERESA WITHDRAWING HER BANKRUPTCY BID? WOULD YOU BUY ONE OF MELISSA’S T-SHIRTS?
Good news for the Giudices and bad news for those wishing to put in a bid on their personal items. PEOPLE magazine is reporting the bankruptcy public auction of Teresa Giudice, scheduled for Oct. 3, has now been canceled.
The lawyer for the Real Housewives of New Jersey star confirms the news to PEOPLE, stating that instead of a humiliating public auction, the Giudices will now be holding a private sale to maximize the amount of money they receive for their valuables.
Those valuables include a stainless steel gas range, a flat screen TV, a crest leather & fabric sofas, a faux marble chess set, bedroom sets, and a piano. You can see photos of the items here.
“When the sale is conducted, the Giudices would get $52,000, because they are allowed that as exemptions,” their lawyer, Jim Kridel, tells PEOPLE. “There would have been a shortfall. What if they got $30,000, but they owed $52,000 to the Giudices? It wouldn’t help, so we said why not have a private sale? It would be best for the state, the creditors, the trustees and the Giudices.”
Despite being able to get their public auction canceled, the Giudices are still facing legal troubles. As we reported weeks ago, a trustee for their bankruptcy case alleged in court documents that Teresa and her husband,Joe Giudice, hid assets, failed to report over $250,000 in earnings, and undervalued items listed as personal property exempt from the bankruptcy filing.
We said a while back that you couldn’t make these things up, and folks you simply can’t when it comes to the Bravo housewives. Just a week after showing off her lavish unaffordable mansion in InTouch Weekly, Teresa Giudice’s luxurious home items have now been officially listed on an auction website to be auctioned off on August 22nd.
The website, A.J.Willner Auctions, specializes in auctioning off home items of the rich and morally bankrupt aka Teresa and hubby Joe Giudice. The Real Housewives of New Jersey stars, who can been seen bragging about their lavish lifestyle on the show, filed bankruptcy to the tune of $11 mil in debt back in October 2009.
And not only does the site list Teresa home address, and a time for the auction, 12:00pm for those interested in stopping by, it also posts the photos of items set for auction from Teresa’s home. Oddly enough, a lot of the items pictured, including Teresa’s stainless steel gas range, flat screen TV, and crest leather & fabric sofas, were all featured in her InTouch magazine home spread.
Other items of Teresa’s that are being auctioned off?
Schaefer & Sons Grand Piano
Wolf 48″ Stainless Steel Gas Range
1080 Pure 42″ LCD Television
Chippendale Style Arm Chair & Pair of Oversized Candle Sticks
Round Pine Kitchen Table & 8 Upholstered Tudor Style Chairs
Panasonic Viera Oversized LCD Television
Dark Finish King Size Bedroom Set
Love Seat, Upholstered Arm Chairs & Area Rug
Connelly Antique Style Pool Table
Faux Marble Chess Set
Yes, even the bed Teresa sleeps on will be auctioned off. Not sure if it gets any more humiliating than that. Unfortunately for the Giudices, their problems have only just began.
As we reported last week, Teresa and Joe are now being accused of perjury by their bankruptcy trustee John Sywilok, whose responsibility is to round up the Giudices’ assets and distribute the proceeds to creditors.
John alleges in court documents dated June 30 that the couple failed to list profits from several business, including Teresa’s clothing line TG Fabulicious LLC, a pizza parlor (which was shown in the most recent episode of Real Housewives) and her cookbook, Skinny Italian, which he claims was written prior to the bankruptcy filing.
The Wall Street Journal also reveals the Giudices are accused of undervaluing some of their luxury items in their bankruptcy filing, including a pool table ($1,000), wedding bands ($400) and living room furniture ($2,000). Like anyone would believe their wedding bands cost $400.
Jim Kridel, an attorney for the Giudices, however tells PEOPLE his clients are innocent of any wrong doing and he plans to object to the filing in court, saying they did not hide sources of income.
“The contract for Teresa’s book was signed after the bankruptcy petition was filed, and all money was received post petition,” he says, adding that the Giudices are legally allowed to freely spend money earned after filing bankruptcy. “If she knew the recipes, it doesn’t take four years to write a cook book,” he says. “It’s not a Mary Higgins Clark novel.”
As for the pizzeria, Kridel claims it is owned by Joe’s father, and therefore should have never been considered an asset at the time of the filing. What’s interesting is that Teresa said during last episode of the NJ Housewives that Joe owned the pizza parlour.
And when it comes to the book fiasco, Teresa is likely lying about that as well, because Teresa wrote in one of her Bravo blogs back in June that her book, Skinny Italian, went to press before Bethenny Frankel’s book, The Skinnygirl Dish, came out. This was Teresa’s attempts at fending off rumors that she copied Bethenny’s book.
So let’s dig a little more into this. Bethenny’s book came out December, 29, 2009 according to Amazon. Teresa filed for Bankruptcy on October 29, 2009. So according to Teresa, she signed the contract for her book, finished writing the book, and was able to get it to press, all within a 2 month span?! Well, we call BS and say it’s highly impossible unlikely. Plus one also has to wonder if Teresa is being made fully aware of her financial troubles. Showing off her home in a national magazine two weeks after their trustee filed documents to auction off her home items just seems surreal and downright moronic, but then again…
TELL US: DO YOU FEEL BAD FOR TERESA & JOE? WILL YOU BE ATTENDING THE AUCTION?
UPDATE – It seems the items listed on the auction website are only the featured items of the auction. A whole lot more of Teresa’s home items will also be auctioned off including all of the beds of her kids, all of the TVs in the kids’ bedrooms, toys, games, books, and even some of her baby’s items including the crib and rocker. Even her refrigerators and jewelry will be auctioned off.
Other items include the kids’ bikes, Gia’s ATV that was given to her on the show for her birthday, and also a boat owned by the Giudices. Poor kids. You can see the full list of auction items by clicking here. Thanks to our reader Anita Vacation for the link.
UPDATE #2 – More photos of Teresa’s home items to be auctioned off have been added.