Teresa and Joe Giudice face bankruptcy, can only pay $7,500 of $13 million debt

Giudice Real Housewives of New Jersey reality stars debt bankruptcy fraud charges

By Jenna Iacurci , Parent Herald Apr 10, 01:10 pm

Teresa and Joe Giudice of "Real Housewives of New Jersey" fame can only pay $7,500 of their $13 million debt, as declared by a bankruptcy judge.

Teresa and Joe seemed to have it all, but their lavish lifestyle - including their $1.7 million home - was based on loans, according to the Daily Mail.

The residence holds just $140,000 of equity, with the remaining $1.56 million financed by mortgages, while their other two homes are fully mortgaged.

Possessions include a Maserati, Sea-Doo boat, Escalade, Ford 350, a Kawasaki quad bike and two Go-carts, which also hold no equity. Even their supposedly $600 pet dogs are worth nothing.

The shocking debts include $5.4 million to Wachovia bank, $1.7 million to the Community Bank of Bergen County, $1.3 million to Dime Savings Bank, and more than $500,000 in New Jersey state taxes, according to court documents obtained by The Star Ledger.

"We just want the money she owes us," an employee of the North Hudson IVF fertility clinic, a creditor of the Giudices', said, according to a report Wednesday by RadarOnline.com. The "real" housewife reportedly owes them $117,765.59 for their services.

Unable to file their tax returns from 2004 to 2008, the Giudices' landed bank and bankruptcy fraud charges. A law source also claims they filed fraudulent mortgage and other loan applications from 2001 to 2008, a year before their show debuted.

"They are going to owe whatever they owed, as if they had not fought bankruptcy," said Ronald LeVine, a Hackensack bankruptcy attorney unconnected with the case. "They're completely stuck with their debt."

Prosecutors said the couple submitted fake W-2s, tax returns and bank account information to lenders. They also alleged the Giudices received about $4.6 million in mortgages, withdrawals from home equity lines of credit and construction loans.

The couple faces heavy fines and possible jail time after accepting a plea deal over 41 counts of fraud and tax evasion. Teresa could get 27 months in prison, while her husband could face 46 months, and possibly be deported back to Italy. They will be sentenced July 8.