Teresa Giudice Reaches Settlement to Close $13.5 Million Bankruptcy Case

by San Antonio Attorney

Real Housewives of New Jersey star Teresa Giudice has made a settlement in her muddled bankruptcy case, which originally filed in 2009.

Teresa and Joe Giudice first filed for bankruptcy seven years ago, owing over $13.5 million to creditors.  By September 2014, the bankruptcy was settled but was reopened last May when she sued her bankruptcy attorney for malpractice.  She is claiming $5 million against James Kridel.  According to reports, her court filings on Nov. 1 revealed that she has reached an initial agreement with her former trustee.

A final ruling is expected on Dec. 6.  But the court documents filed by the bankruptcy trustee showed that they have reached a settlement during the mediation session on Oct. 5.

The court documents state the following tentative agreement: Teresa has to acknowledge all of the creditors’ outstanding claims before the bankruptcy filing.  She is going to get 55 percent of the remaining amount of the proceeds, which is the total recovery through trial or settlement less the administrative expenses.  The remaining amount will be paid to her creditors in accordance to the bankruptcy rules, and she will keep anything that’s extra.

In addition, the lawsuit’s settlement should be approved by the trustee and has to be updated with all the important developments of the lawsuit.

The case against Kridel is still in progress, but in the event the judge approves the proposal in December, the bankruptcy will be formally closed once more.

If you want to reopen a bankruptcy case, a Bankruptcy Lawyer San Antonio can help you file an ex parte motion that explains your reasons for reviving the case.  The judge will immediately review that motion without having to inform other parties.  It is necessary to file a proposed order together with the ex parte motion.  As soon as the bankruptcy court enters the order, you have to act right away to achieve the purpose of your motion.

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