TMZ recently posted a story saying the troubled pair will get a clean slate from the bankruptcy judge, erasing the $13M debt and leaving the creditors with nothing. But according to the Star Ledger, when the bankruptcy trustee overseeing the couple’s finances submitted his final report, it stated the creditors can pursue the Giudices for repayment.
A fan asked Star-Ledger writer Vicki Hyman specifically about the TMZ report, asking if the couple could really walk away from the debt. She answered, "From what the bankruptcy experts tell me, no, they must pay their debts. The bankruptcy court refused to discharged their debts."
That's certainly what the story’s readers wanted to hear, since some people think it’s unfair to be able to shrug off that kind of debt.
Joe and Teresa filed for bankruptcy in 2010. The trustee’s report said their “outstanding debts include $5.4 million to Wachovia, $1.7 million to the Community Bank of Bergen County, $1.3 million to Dime Savings Bank, more than $500,000 to the New Jersey Division of Taxation, and more than $386,000 to the Internal Revenue Service."
Ronald LeVine, a Hackensack bankruptcy attorney not connected to the case, told the Star-Ledger, "They are going to owe whatever they owed, as if they had not fought bankruptcy. They're completely stuck with their debt."
Joe and Teresa, who have four daughters, pleaded guilty to multiple fraud charges in March. They will be sentenced on July 8. Their legal woes will play out, in some fashion, on RHoNJ Season 6, which recently finished taping but has yet to be given a premiere date.
It’s overwhelming to even think about $13 million in debt. If this shows the lifestyles of the rich and famous we’re just glad we’re poor and obscure!