Real Housewives of New Jersey star Teresa Giudice has settled her bankruptcy case. Teresa and her husband Joe first filed for bankruptcy back in 2009, claiming they were more than $13 million in debt.
The case was first settled in September 2014, but reopened again in May of this year, after she filed a $5 million malpractice lawsuit against her former bankruptcy attorney, James Kridel. Court documents filed in New Jersey on November 1 show, however, that she has reached a tentative deal yet again with her trustee.
A judge will make a final ruling on December 6. However, the bankruptcy trustee wrote in the court documents obtained by RadarOnline that â€œa settlement was reachedâ€ during an October 5 mediation session with the Giudicesâ€™ team.
According to the court documents, the tentative deal contains the following points: Teresa must â€œacknowledge and agree to honor any outstanding pre-petition claimsâ€ from creditors. She will â€œreceive 55% of the â€˜net proceedsâ€™ of the Kridel claim, meaning the gross recovery through settlement or trialâ€ minus â€œthe administrative costs,â€ which the trustee will oversee. The rest will be distributed to her creditors â€œpursuant to the bankruptcy code,â€ and Teresa will get anything thatâ€™s left over.
The trustee must also â€œapprove any settlement of the Kridel suitâ€ and must â€œbe kept advised of all significant developments and status of the case.â€
Teresa’s lawsuit with Kridel is still ongoing, but if the judge signs off on the proposal next month, the bankruptcy will be officially closed again.
Photo Credit: Bravo