Teresa Giudice’s bankruptcy has been settled – and this time it’s for real! Or it will be in a month. This means Teresa and her imprisoned husband Joe Giudice are finally off the hook for the $13.5 million they owe creditors.
To be fair to the Real Housewives Of New Jersey star, that staggering number has been reduced since the original fraudulent filing way back in 2009 which led to both Teresa and Joe pleading guilty to financial fraud.
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Since then Teresa and Joe tried to settle, then withdraw their bankruptcy, then finally wound up indicted (and in prison), and the bankruptcy discharge was denied , thus they owed $13 million again.
Earlier this year, however, Teresa and Joe’s bankruptcy was re-opened by the trustee after they filed a $5 million dollar malpractice suit against their former bankruptcy attorney James Kridel. He says the case is bogus, but it’s still in court, so…
Teresa was asking to keep any potential settlement from the lawsuit instead of it going immediately towards satisfying outstanding creditors listed on the bankruptcy, because she was already in repayment plans with the remaining accounts (many of her creditors have already been repaid through the sale of income property and other assets).
As of Nov 1. Teresa reached a “tentative deal” with the trustee, and a settlement plan was agreed upon in court mediation. Pending the judge’s approval in December, the deal will be finalized, the bankruptcy closed – AGAIN.
Radar Online reports that Teresa must “acknowledge and agree to honor any outstanding pre-petition claims” from creditors – as in, continue with organized repayment plans (the IRS listed among the creditors).
Any settlement in the lawsuit against Teresa’s former attorney must be approved by the trustee, who must be kept in the loop on developments and the status of that case throughout.
Teresa and Joe will end up with “55% of the ‘net proceeds’ of the Kridel claim, meaning the gross recovery through settlement or trial” – this is after administration costs, all overseen by the trustee. Anything remaining will go directly towards outstanding creditors, distributed “pursuant to the bankruptcy code.” Also overseen by the trustee. Once the judge signs off Teresa is free and clear of bankruptcy.
Let’s hope Teresa’s new motto becomes namast’ay outta debt, y’all!
TELL US – DO YOU THINK THIS IS FINALLY THE BEGINNING OF THE END OF TERESA’S FINANCIAL ISSUES? WILL SHE CHANGE WITH JOE “AWAY”?
[Photo Credit: Bravo]