According to the April 8th Trustee’s Final Report in Teresa and Joe GIudice’s 2009 bankruptcy filing, the Giudices have only paid back $7500 of their debt and they still owe $13.4 million to creditors. NJ.com obtained the report, which was compiled by trustee John Sywilok and filed on Tuesday. The documents show that while the couple has satisfied $7500 in debt for attorney fees tied to the trustee, a $13.4 million balance still remains.
The judge has previously denied a discharge of the couple’s debts, which means that the creditors can still seek what they are owed.
Among the creditors listed in the report are Wachovia Bank (now Wells Fargo) for $5.3 million; the Community Bank of Bergen for $1.7 million; and the Internal Revenue Service which is owed $327,556.
The Giudice’s assets include; their five-bedroom home, a 2007 Cadillac Escalade SUV, household furnishings, commercial real estate, and interest in several companies. Valued at nearly $2.3 million, these assets really amount to a net value of $165,000, because of liens and other costs attached to the items.
When filing for bankruptcy, Teresa cited the reason being: “real estate deals that had gone bad in a bad economy.”
“We didn’t spend millions of dollars on gold toilets or private planes,” Teresa said. “We bought buildings, fixed them up, and tried to help other people start their own businesses or be able to afford an apartment.”
However, there is another major issue tied to the bankruptcy case. In their criminal case, Joe and Teresa both admitted to concealing assets from the trustee. They also admitted that they conspired to defraud banks and other lenders by submitting fraudulent applications and supporting documents in connection with nearly $5 million in mortgages, construction loans and lines of credit between 2001 and 2009.
Teresa is facing 27 months in prison, while Joe could get 46 months hard time and is facing deportation.
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