‘RHONJ’ Felon Teresa Giudice Enters Proposal To Settle $13.5M Bankruptcy Debt
Since getting out of prison, Teresa Giudice has been working hard to clean up her messy debts.
The Real Housewives of New Jersey convict has yet again reached a settlement in her bankruptcy case, according to Radar Online.
Joe and Teresa first filed for bankruptcy protection back in 2009, claiming they couldn’t pay back the more than $13 million they owed to creditors. It was originally settled in September 2014, but reopened in May 2016, after Teresa sued her attorney, James Kridel, for $5 million, alleging malpractice.
Court papers filed on Nov 1 show that Teresa has reached a new settlement deal with her trustee after mediations took place with her attorneys on Oct 5, however a judge will need to sign off on this agreement which is scheduled for Dec 6.
Below are the main points stipulated in the agreement:
- Teresa must “acknowledge and agree to honor any outstanding pre-petition claims” from creditors.
- She will “receive 55% of the ‘net proceeds’ of the Kridel claim, meaning the gross recovery though settlement or trial” minus “the administrative costs.”
- Any remaining money will be distributed to her creditors “pursuant to the bankruptcy code” and Teresa will get any money that is left over.
Currently, Teresa’s suit against Kridel is ongoing and the trustee has specified they need to be kept apprised of any status changes and developments and “approve any settlement.” However, if the judge signs off on the bankruptcy settlement in Dec. the case will officially be closed yet again.
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