Teresa Giudice Settles Bankruptcy

Teresa

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 “a settlement was reached” during an October 5 mediation session with the Giudices’ team.

According to the court documents, the tentative deal contains the following points: Teresa must “acknowledge and agree to honor any outstanding pre-petition claims” from creditors. She will “receive 55% of the ‘net proceeds’ of the Kridel claim, meaning the gross recovery through settlement or trial” minus “the administrative costs,” which the trustee will oversee. The rest will be distributed to her creditors “pursuant to the bankruptcy code,” and Teresa will get anything that’s left over.

The trustee must also “approve any settlement of the Kridel suit” and must “be kept advised of all significant developments and status of the case.”

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

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10 Comments on "Teresa Giudice Settles Bankruptcy"

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Why there should be anything left over?

She should be living in a 3 bedroom apartment. The two younger ones can share. The government should be garnishing every penny she makes on this show except for moderate living expenses, like the rest of us. Let them eat mac ‘n’ cheese.

So so spot on. Living in an apartment and making 35k a year. That’s a reality show

Robert, I was thinking the exact same thing. So she will MAKE money from her bankruptcy?!?

Teresa acknowledge something? This won’t go through.

What a judicial system we have going on in this country. Two convicted felons living in a huge, ugly-ass mc-mansion wanna-be. Something smells fishy to me.

Talking about Joanna Krupa?

It is amazingly how they can still pay for the house and upkeep. Also when she got out, he leased a car for her. Lease? That takes pretty good credit. How on earth did this happen? You know after all their crimes, their credit is shot.

Re: Garnishing of pay to pay off debts If the amount based on the New Jersey law is less than the amount permitted under federal law, your creditor may only take the lesser amount. Below are the rules under New Jersey law: up to 10% of your income if you earn no more than 250% of the federal poverty level for a household of your size, or up to 25% if you earn more than 250% of the federal poverty level. “Disposable earnings” are those wages left after your employer has made deductions required by law. You can find the… Read more »
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