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Joe Giudice Bankruptcy

Bankruptcy, what bankruptcy?

Exactly two years after filing bankruptcy in 2009, to the tune of $11 million in debt, Joe Giudice withdrew his bankruptcy filing on Monday in a New Jersey court.

The NJ Star-Ledger was the first to break the shocking news regarding the Real Housewives of New Jersey star. So why did Joe abandon his bankruptcy bid? Well it all has to do with the accusations levied against him and his wife Teresa Giudice by their bankruptcy trustee John Sywilok.

About a year after they initially filed, the trustee accused them of hiding assets, and concealing income amongst other things. The Giudices were accused of concealing assets including three vehicles, a boat, properties in Hillside, the family pizzeria, a laundromat and apartments. Teresa was also accused of hiding income including a $250,000 advance she received for her bestselling book “Skinny Italian.”

While in court, Joe abandoned his quest to have his millions of dollars in debts forgiven in federal bankruptcy court. The Ledger reports the change of heart came after he invoked his Fifth Amendment rights against self-incrimination during questioning by the trustee for his creditors about assets, income and business interests he is accused of hiding from the court.

The judge signed off on the settlement between Joe and the trustee. The court order reads, “The defendant Giuseppe Giudice acknowledges his desire to resolve the matter without the need for further inquiry or litigation, and without making any further admissions.”

However, the agreement signed by Joe does not apply to Teresa. Though it’s likely Teresa, who has been raking in the dough since filing bankruptcy, will end up dong the same.

So why did Joe make this decision? More than likely to avoid future criminal prosecution. Joe and Teresa were scheduled to face trial over the bankruptcy fraud leveled against them. If they had been found to be in the wrong during that trial, the next steps would have been a criminal case.

“They are really cracking down on bankruptcy fraud,” said bankruptcy lawyer Leonard C. Walczyk. “It is a real hot issue.”

So to sum this up, Joe is now responsible for millions of dollars of debt while Teresa’s bankruptcy case is still working its way through the court system. The trustee is still opposing her discharge of debt. A bankruptcy lawyer reveals Joe would still be responsible for their joint debts even if a judge absolves Teresa’s liability.

As stated, it’s likely Teresa will end up following in Joe’s footsteps, you know, if she wants to avoid criminal prosecution and/or prison.

Photo credit: Steven White / Splash News

TELL US – THOUGHTS ON THE LATEST? SURPRISED BY THIS MOVE BY JOE?

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Ah yai yai, another Bravo housewife bites the dust! In somewhat shocking and not so shocking news, the NY Post is reporting today that Teresa Giudice, star of the Real Housewives of New Jersey, has filed for bankruptcy alongside her husband.

Even more shocking? Teresa and hubby Joe Giudice owe nearly $11 million dollars, and have their income listed at only $79,000 a year. And it doesn’t end there. Teresa’s home is also in foreclosure, and yes this is the same $1.8 million, 10,500-square-foot home Teresa was shown moving into during the first season. The bank has started the foreclosure proceedings.

The NYPost refers to the Giudices as “real-life deadbeats” who “are up to their tanned necks in liens, foreclosures and unpaid bills.” In bankruptcy papers filed in Newark federal court, the Giudices say they owe their creditors an astonishing $10,853,648.04.

Teresa and Joe have also defaulted on their $1,280-a-month payment for the family’s luxury black Cadillac Escalade.

It gets even worse folks. The banks have also foreclosed on other homes owned by the couple, including a $279,000 four-bedroom Jersey Shore house. The Giudices are said to have had three mortgages on the house and owed $325,000. Also foreclosed on is a $200,000 home in Lincoln Park, NJ, that had four mortgages — and an outstanding debt of $600,000.

And despite being shown on their Bravo reality show as spending thousands and thousands of dollars on their kids’ clothing, Teresa and Joe claim to spend just $400 a month on clothes in court papers.

As for their income, Joe has his monthly income listed at $3,250; while Teresa lists hers as $3,333. The couple also lists another $10,000 in “monthly assistance from family members.”

And oh yeah, Teresa also owes nearly $20,000 to Bloomingdale’s, Neiman Marcus, Nordstrom. Their credit card debt alone is listed at $104,000.

TELL US – ARE YOU SHOCKED? WHAT ARE YOUR THOUGHTS ON TERESA’S MASSIVE DEBTS?

UPDATE: Teresa, who appears to not be in denial at all about her $11 M debt, posted the following message on her twitter Saturday -

“A huge THANK YOU to all my fans for all your love and support. Joe & I are just fine and will continue to be. ♥♥♥from our house to yours! xx.”

Wonder which one of their foreclosed houses that is… But it is nice to know Teresa and hubby Joe will continue to be fine, while the rest of society is forced to incur their irresponsible debt.

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