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Court Agrees to Terms of Teresa Giudice’s Bankruptcy

January 31, 2017

“Real Housewives of New Jersey” star, Teresa Giudice, has — for the moment — some breathing room.

In December 2016, she reached a settlement with her creditors that has been approved by the U.S. Bankruptcy court in Newark, NJ. This settlement allows her to keep 55 percent of any potential winnings from the ongoing lawsuit she has against her former bankruptcy attorney, James Kridel.

The parties reached the settlement after intense negotiations between Giudice and multiple creditors and attorneys. A U.S. bankruptcy judge expressed simultaneous relief and disbelief at the surprising resolution of the hearing.

Giudice’s attorneys at the time of the ruling, Anthony Rainone and Carlos Cuevas, indicated that Guidice has repaid the majority of her creditors, including $156,000 against a $551,563 lien filed by the Internal Revenue Service. The attorneys also stated that Giudice and her husband have worked out a settlement with the NJ Department of Revenue.

The Giudices initially filed for bankruptcy in 2009, retaining Kridel as their counsel. However, the bankruptcy trustee, John Sywilok, accused the Giudices of hiding assets and income, which prompted the Giudices to withdraw their bankruptcy filing.

Teresa Giudice was charged and pled guilty to bankruptcy fraud. She was also found guilty of wire and mail fraud for a scheme perpetrated prior to the bankruptcy.

While serving her one-year prison sentence, Giudice filed a legal malpractice suit against Kridel, alleging the mishandling of the fraud charges resulted in her imprisonment. Kridel responded by calling the lawsuit “absurd.”

When the trustee, Sywilok, was made aware of Giudice’s case against Kridel, he reopened her bankruptcy. Sywilok initially contended that any winnings from this case should go to Giudice’s creditors but subsequently agreed with her attorneys to split the award between her and her creditors.

Giudice’s legal malpractice suit against Kridel was dismissed earlier in 2016 due to the reopened bankruptcy. However, Giudice’s attorneys indicate they plan to refile the suit this month, claiming Sywilok as a co-plaintiff.

In the RHONJ reunion show in 2016, Teresa Giudice accused co-star Jacqueline Laurita of reporting her to the feds.

Ordinary people sometimes face unexpected expenses and other financial challenges in their daily lives. A competent bankruptcy attorney can review your case to help your decide if filing bankruptcy is a valid option.