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Teresa Giudice Bankruptcy

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 Giudice withdrew 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…

Photo: WENN

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?

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?

In last nights installment of Real Housewives of New Jersey it’s another round of the feud that never ends (it just goes on and on, my friends), as Teresa and Melissa engage in sister-in-lawemy behavior with behind the back comments and to the face fracas. Kathy hosts a goddess get-together to debut her catering ideas, but Teresa decides that she is the only goddess there, so the party becomes allll about her! Jacqueline and Ashley argue, and argue, and argue some more until Chris reaches his breaking point! Oh, and no Joe G-to-the-orga this episode – so happy days!

Things pick up where Hat-ley and Jacqueline left off last week. In an extremely emotional scene, Jacqueline is sobbing in the basement of the restaurant while Chris tries to console her. Jacqueline asks the questions millions of viewers have been screaming at the TV for 2.5 seasons: Why are they letting Ashley have free room and board when she treats us like crap? Exaaaactly, Lauritas, exaaaactly!

CLICK THE CONTINUE READING BUTTON TO READ THE REST!


According to a report by Life & Style magazine, Real Housewives of New Jersey star Teresa Giudice is facing jail time.

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?

Real Housewives of New Jersey Season 3 Teresa Giudice

The never ending legal drama for Real Housewives of New Jersey star Teresa Giudice continues.

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.”

TELL US – THOUGHTS ON THE LATEST?

While Teresa Giudice, star of the Real Housewives of New Jersey, was able to escape the humility of a public auction, it seems her home items are still up for sale.

If you recall, Teresa and husband Joe Giudice filed for bankruptcy to the tune of $11 million in debt.  Back in July of this year, a judge ordered the Giudices to auction off most of their home items as a means to recoup some money for their debtors.  Those items included a grand piano, LCD TV, stainless steel gas range, bedroom furniture, and even her kids’ bedroom sets and toys.

The Giudices’ attorney was however able to get the public auction canceled in October.  RadarOnline is now reporting the private sale is underway.

CLICK HERE TO SEE PHOTOS OF TERESA’S HOME ITEMS!

Even more interesting, the Giudices have put in their own minimum bid of $54,405 in hopes of retaining their valuables.  Meaning anyone who wishes to own Teresa’s home items would have to pay at least $54,406.  So basically Teresa and Joe get to keep their items if the judge approves the price and no other parties outbid them.

Teresa’s attorney James Kridel tells RadarOnline that anyone who puts in an offer would be doing it for the wrong reasons.  “In my opinion, it would have to be out of spite or out of ignorance,” he said. “Because whereas my mattress might be worth the replacement cost to me, it’s probably worth almost nothing to someone else, so the real value of it would be ridiculous.”

Mounting legal troubles continue to remain an issue for Teresa and Joe. As we reported last month, the couple is required to stand trial on July 14 & 15, 2011 for charges relating to bankruptcy fraud.  They are accused of concealing assets and hiding income in their bankruptcy filing.

A pre-trial has been set for Dec 14th, 2010.

Days after we reported the news of Teresa Giudice and hubby Joe Giudice having to stand trial for bankruptcy fraud in July, 2011, their attorney is now speaking out on their behalf.

James Kridel, attorney for the Real Housewives of New Jersey stars, will have to prove to the bankruptcy court come 2011 that his clients’ bankruptcy filing is indeed legit and should not be overturned. Roberta DeAngelis, the attorney in the U.S. Trustees Office who evaluated the Giudices’ filing, has recommended that the court not grant their Chapter 7 petition due to fraud. DeAngelis accused the Giudices of concealing assets, hiding income, providing false information to the IRS, etc.

Kridel’s strategy seems to be to avoid the trial all together. “I am going to be sending a letter to the US Trustees Office because I would like to resolve with them their issue rather than have to try it,” Kridel told RadarOnline.

Kridel however claims he isn’t doing this out of fear of losing the case or desperation. “I’m not doing it out of desperation; I’m doing it in their [debtors and US Trustees] best interest. That’s the next step. But ultimately the ball is in their court.”

Kridel also adds that he will argue that his clients “have been punished enough.” Kridel stated, “Instead of just looking at it as ‘Joe Giudice,’ it is a family and to deny a discharge in this case would destroy this family. Some of the family members are clearly not responsible for anything that occurred here.”

Good luck with that Kridel. In other NJ news, RadarOnline is also reporting that Caroline Manzo’s sons – Albie and Chris Manzo – have officially moved out of their mama bear’s cave and into their own bachelor pad!

“The guys decided to get their own place because they are young and good looking and famous,” a source close to the family told Radar. “They get a lot of attention from women. They are growing up and they need their privacy.”

The source adds that Caroline is however having a hard time adjusting to her new empty nest. “Their mom is really sad because she is really close to her sons,” added the insider.

TELL US – WHAT ARE YOUR THOUGHTS ON THE GIUDICES’ ATTORNEY’S COMMENTS AND THE MANZO BOYS MOVING OUT?

Teresa Giudice and Joe Giudice In Court

More news to report in the Teresa Giudice bankruptcy saga.

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?

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