On October 29, 2009 Teresa Giudice, who appears on Real Housewives of New Jersey, and her husband Giuseppe (AKA Joseph) filed a Chapter 7 bankruptcy.
I admit it, I do watch the show. And others that watch the show will recognize Teresa as the housewife on the show that is constantly paying thousands of dollars for kids clothes or for furniture in big wads of cash. In case you wondered how wealthy they were to be able to do that, apparently it was only an illusion.
On June 30, 2010 the trustee in the Giudice bankruptcy filed a complaint with the court saying Teresa and her husband allegedly hid assets they failed to disclose in their bankruptcy. The complaint says, “Upon information and belief, the Defendants have concealed documents, records and papers from which the Defendants’ financial condition or business transactions could have been ascertained. The acts complained of include but not limited to failure to disclose an interest in TG Fabulicious LLC, interest in Pizza Parlor, interest in Laundromat, interest in a published book written prior to the filing of petition and information as to actual income received by the Defendants.” – Source. That’s not good.
And due to the lack of disclosure and admission of their real income the bankruptcy trustee is asking the court to deny their bankruptcy discharge. What a mess.
The Bankruptcy Filing
I took a look at the 62 page Chapter 7 bankruptcy filing and found the following information interesting.
In the petition the Giudice’s say:
- The big house they show on the television show is only worth $1,700,000 and that property along with their other properties exceed the value of the loans against the homes.
- Despite of all the thousands of dollars viewers have watched Teresa spend on clothes just for the kids or furniture for the house, their bankruptcy filing claims the value of the apparel for the family is $3,000.
- A look at their creditors is comprised of the usual suspects. But these debts caught my interest.
- Norman Barna – Fourth mortgage against on of the homes. Really, a fourth mortgage!!!
- Bloomingdale’s credit card – $6,451
- Citi Cards – $42,039
- Home Depot credit card – $14,440
- A $7,355 bill for home services from 2003.
- Neiman Marcus credit card – $5,196
- Nordstrom credit card – $8,084
- Cell phone bill – $2,239
- Joseph lists his employer as G&G Stucco & Stone Specialist and Teresa lists her occupation as unemployed.
- Joseph says he makes $3,250 a month, gets $10,000 a month in assistance from family and Teresa gets $3,333 a month from Bravo for her appearance on the Real Housewives of New Jersey.
- They disclose there are a number of lawsuits against them. Two are for foreclosure, six are for collection and one is a personal injury lawsuit.
The bottom line is the couple is claiming they own $2,261,150 in assets and personal property but owe $8,709,831 in liabilities, of which $6,127,454 is unsecured debt. – Source
Well it now seems the Real Housewives of New Jersey have something in common with the Real Housewives of Atlanta, click here.