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Teresa Giudice Bankruptcy


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?

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 returns to 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?

Bravo+Real+Housewives+New+Jersey+Teresa+Joe+Giudice

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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