Happy Sentencing Day! Before receiving their federal fraud sentence, Teresa Giudice and Joe Giudice settled their bankruptcy – finally. But unfortunately the news is not good, the judge denied the bankruptcy discharge which mean the case is closed now, and it’s as if the couple never filed for for bankruptcy at all and must repay their debts the old-fashioned way!
The Real Housewives Of New Jersey stars filed papers to have their bankruptcy closed and it’s now a done deal. They’ll be able to hold on to some assets such as their home, which the couple was allowed to keep and is now selling.
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Teresa and Joe were not required to repay creditors during the federal investigation and indictment because their fraudulent bankruptcy filing blew the cover off other such illegal activity such as tax and mortgage fraud, leading investigators to probe into the Giudice’s financial practices.
On September 29th, however, a judge denied their bankruptcy discharge meaning Teresa and Joe’s bankruptcy filing was essentially canceled (and never existed) they will now have to find a way to repay all of their creditors – every last one – to the tune of $13,480,263.11. They are starting by listing both their homes – their Franklin Lakes mansion for $3.99 million and their Jersey shore house for $315,000, as well as a Lincoln Park, NJ rental property listed for $179,000.
“The case of the above named debtor(s) is closed,” United States Bankruptcy Court judge Donald H. Steckroth wrote in his decision, court papers obtained by Radar Online. Among the creditors the Giudices owe is several banks, the IRS, and credit card companies, and several contractors Joe worked with in his construction business.
Teresa and Joe have reportedly already started repaying creditors, but the couple cannot file bankruptcy again for these assets for another 7 years.
** Disclaimer: I’m not a bankruptcy expert, if anyone has more specific information on the Giudice bankruptcy, or bankruptcy in general, please let us know. I’m particularly interested in when, if at all, they can refile because I have a feeling they’ll attempt that in the future. And about the ONLY reason I could envision the couple divorcing is to get out of some of these debts. With their sentencing today they will also owe the Feds restitution.
TELL US – WILL TERESA AND JOE REPAY THEIR DEBTS?
[Photo Credit: Joel Ginsburg/WENN.com]