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?
Well, I’m excited to finally report some positive news concerning Teresa Giudice’s finances!
As you recall, on Monday the Real Housewives of New Jersey star’s husband, Joe Giudicewithdrew his bankruptcy filing after controversy over allegations the Giudices had lied about their assets and income at the time of filing. Joe was at risk of facing criminal prosecution related to bankruptcy fraud. Teresa still potentially faces those charges, as she has yet to withdraw her filing, although sources report she is planning to.
Now, onto the positive! In a new interview for PEOPLE, Teresa’s attorney Jim Kridel reports “Teresa and Joe are happy about this,” and Teresa feels ” ‘vindicated’ to be voluntarily paying her remaining debts rather than have them discharged in bankruptcy court. (They will move to settle the case later this week.).” Wait – what?! Did I read that correctly?! Why, yes, yes I did.
Mr Kridel continues “Teresa has always wanted to be able to say that she paid her creditors.” The Giudices however had a hard time doing that as they owed a seemingly insurmountable amount of money related to multiple mortgages on several inner city apartment buildings, bills for building materials, and the balances on their various credit cards which accumulated to about $11M in debt according to their bankruptcy filing.
“Almost all the debt in the bankruptcy was Joe’s debt,” Kridel claims. Apparently, the smaller debts and credit card bills, which totaled around $100,000, were attributed to Teresa, and her lavish spending and out of control need for anything covered in glitter, lace, or marble, who “wanted to pay,” however once the Giudices filed bankruptcy their creditors were not allowed to be paid “preferentially.”
The article explains that as of now several of the banks have been repaid from the sale of the apartment buildings listed as a liability in their bankruptcy filing and Joe has also paid the $586,000 claim against him from his former business partner through a building’s sale; leaving the Giudice’s remaining debts “within a manageable range.”
With her many business ventures (including a make-up line and bottled cocktail) Teresa is no longer completely broke. Teresa “may not be able to pay all [her creditors] with one check, but she can pay them back. She wants to do the right thing,” her lawyer articulates. No word if Joe is currently employed, but at least his wife is bringing home the bacon and attempting to spend it wisely!
According to Kridel, who gave this interview with dollar signs in his eyes, “The cost of litigation might exceed what she owes.” Well, hopefully they won’t default on that bill…
Do you believe Teresa that she wants to repay her debts? Are you as shocked as I am that she supposedly wants to do the right thing? If Teresa does, in fact, repay her creditors the old-fashioned way would this give you a more positive opinion of her?
And as expected, this all has to do with her ongoing bankruptcy legal drama. See back in 2009, Teresa and hubby Joe Giudice filed bankruptcy to the tune of over $11 million in debt. However, almost a year later, their bankruptcy trustees alleged that Teresa knowingly withheld assets, including a $250,000 advance for her best-seller Skinny Italian and a business bank account.
An offense lawyers reveal could easily land her in prison for six months to a year. In fact, in unusual Teresa fashion, she actually spoke to the mag about the bankruptcy case. “I wish I could make this all go away,” admitted a clearly shaken Teresa, who insists any omissions were accidental, “but all I can do is take this one day at a time.”
Legal experts however add that Teresa, 39, is living on borrowed time. She and Joe were originally due to appear in court to face allegations of bankruptcy fraud on July 14, but the proceedings have now been postponed, giving her extra time before she faces the possibility of being torn from her daughters.
And unfortunately for Teresa, an attorney say it’s her own fault, even if she didn’t intend to commit a crime. “Teresa had her book contract a week before bankruptcy papers were filed but waited until a month after to sign it.” notes New Jersey lawyer Eric Lubin, who isn’t involved with the case.
“It seems as though she was avoiding signing the contract so that the money would come to her after the bankruptcy petition was filed. How could anyone forget that they have $250,000 coming to them?” In bankruptcy, everything a debtor owns before filing goes toward paying off debts. Anything earned after filing, the debtor can keep.
Meanwhile, bankruptcy trustees have also raised questions about $100,000 in deposits associated with Teresa’s online boutique, TGFabulicious.com. Because of that, Teresa “could be looking at life-altering consequences here,” cautions James Leonard, another New Jersey lawyer.
As for Teresa, she continues to keep her head up high while the legal drama looms on. “I’ve worked hard to brand myself,” she tells Life & Style. “I have no fears… Hopefully everything is going to be good,” adds Teresa.
Photo credit: WENN
TELL US – THOUGHTS ON THIS REPORT? DO YOU THINK TERESA KNOWINGLY WITHHELD ASSETS OR WAS IT AN INNOCENT MISTAKE?
Almost 2 years after filing bankruptcy to the tune of $11 million in debt, Teresa is facing the possibility that her bankruptcy filing could be overturned. Why? She is facing trial for bankruptcy fraud alongside her husband Joe Giudice.
If you recall, we reported last year that the Giudices were scheduled to go on trial July 14th. However the Giudices were able to get that date postponed last month. While New Jersey Judge Morris Stern refused to dismiss the trial, he did postpone it to October 13th… just in time for the filming of the RHONJ season 4.
The Giudices’ trustee John W. Sywilok is accusing them of concealing assets and hiding income on their bankruptcy filing. You can read all about that by clicking here. The goal of the trustee is to get the bankruptcy granted to them dismissed so that they will be responsible for all their debt. In addition to that, Teresa and Joe also have another trial scheduled for January 2012. It appears plaintiffs in that case are trying to get a judge to exclude a mortgage debt related to Joe’s dealings with his former business partner Joe Mastropole, excluded from their bankruptcy.
In other NJ news, Teresa’s sister-in-law Melissa Gorga spoke about their feud in a new interview. Melissa, 31, reveals she is willing to let bygones be bygones when it comes to her relationship, or lack thereof, with Tre. Melissa also insinuates that Teresa was only willing to make up with her because of the Bravo cameras.
“There’s definitely times where I hear her point,” Melissa told the L.A. Times “But it’s been frustrating for me because I’ve been asking her for years and years and years to fix it, to work it out with me. All of a sudden, within the last year, she was doing all the right things and saying the right things. But better now than never, I guess. I’ve been trying to get her to act this way for years. I guess I was confused: ‘Why now?’ But whatever. We’re family. I’m always willing to forgive.”
So how is their relationship today? “Right now, she’s my sister-in-law,” Melissa said. “We have kids the same age — we try, we try to work it out. And we try to be together for the family. It’s not like we’re best friends, but we’re family. I want my husband to have a relationship with his family.”
Somehow this news has managed to slip through the cracks, but two days after the Ibuysss blog first broke the story, Reality Tea has uncovered some documents showing that on September 24, 2010, New Jersey Judge Morris Stern ruled that Real Housewives of New Jersey star Teresa and her husband Joe Giudice are required to stand trial on July 14 & 15, 2011 for charges relating to bankruptcy fraud.
The Giudices had tried to get the bankruptcy fraud allegations dismissed. If you recall, Teresa and Joe filed bankruptcy back in October 2009 to the tune of $11 million in debt. Things were working according to plan for the Giudices as Teresa even went on a $60,000 shopping spree just days after filing Chapter 7.
The problems arose however when on 06/30/2010, John W. Sywilok, the Chapter 7 Trustee assigned to oversee the Giudices bankruptcy filing, alleged they had commited bankruptcy fraud by concealing assets and income from their filing. The accusations include –
Failure to report $250,000 (an advance Teresa received from a publishing deal for her book)
Failure to report Joe’s ownership/interest in a Pizza shop
Failure to report a $3,333.33 monthly income
Concealing assets including a bank account of Joe’s, two pieces of real property, vehicles, the ownership of an online boutique called TG Fabulicious
Presenting false income tax returns to the bankruptcy court
From looking at the court documents, tt seems the July, 2011 court date is simply to get a judge to dismiss the Giudices’ Chapter 7 bankruptcy petition because of fraud. If the trustee does suceed in getting the bankruptcy dismissed, the Giudices would then be responsible for their $11 million debt.
We’re no legal experts here at Reality Tea but it is likely criminal charges for lying under oath, IRS fraud, etc will follow if the Giudices are found guilty of commiting bankruptcy fraud as it appears the July 2011 hearing is solely focusing on getting their bankruptcy dismissed, and not so much on the criminal aspect of the serious allegations.
TELL US – WHAT ARE YOUR THOUGHTS ON THE LATEST DEVELOPMENTS? IF THE GIUDICES DID LIE IN THEIR FILING, DO THEY DESERVE TO GO TO JAIL?
If you have been following the news reports about Teresa Giudice for the past few months, and have recently wondered if things could possibly get worse for the Real Housewives of New Jersey star, we are here to report the answer is yes.
The media outlet RadarOnline has uncovered some new documents filed on Thursday by Roberta A. DeAngelis, the US Trustee overseeing the bankruptcy petition of Teresa and husband Joe Giudice, basically asking the Judge in the case to dismiss the Giudices’ Chapter 7 bankruptcy petition because of fraud.
The main fraud accusation has to do with that little known book Teresa wrote titled Skinny Italian. The accusation is that Teresa failed to disclose the $250,000 advance she received from her publishing deal with Hyperion, which might explain why she went on a $60,000 shopping spree just days after filing.
This is fraud because the contract Teresa signed has been uncovered, and it is dated October 22, 2009, which is exactly a week before she filed for bankruptcy on October 29, 2009 to the tune of $11 million in debt. “The Defendants have knowingly and fraudulently made false oaths in this case” states the court documents.
Popeater also reports that while Teresa acknowledged in an April 2010 examination under oath that she received the book advance, her legal team failed to officially update court records about the newly disclosed assets.
Other assets the couple is accused of concealing include a bank account of Joe’s, two pieces of real property, vehicles, the ownership of an online boutique called TG Fabulicious, as well as Joe’s 1601 Maple Avenue Associates, LLC.
The complaint also accuses the Giudices of presenting false income tax returnsto the bankruptcy court. And as the days go by, prison time is starting to look like a real possibility for the Giudices, that is if the feds decide to file fraud and perjury charges against them.
As if this wasn’t humiliating enough, RadarOnine is also reporting today that Teresa will be hosting a table flipping contest in Delaware on September 25. The site states “Teresa will appear at the Funky Monkey in Wilmington Delaware, where she’ll hold a meet-and-greet with fans and invite women to flip a table for a prize.”
TELL US – WHAT ARE YOUR THOUGHTS ON THE LATEST NEWS ABOUT THE GIUDICES?