Thomas Girardi and his law firm have been forced into Chapter 7 bankruptcy by his creditors, according to court documents obtained by The Blast. The husband of Real Housewives of Beverly Hills star, Erika “Jayne” Girardi has been slammed by multiple lawsuits amid the duo’s high profile divorce. The case was filed in a California Federal Court.
The documents read—”The debtor is generally not paying such debtor’s debts as they become due.”
Tom’s former law partners, Robert Keese and Jill O’Callahan are two creditors listed in the petition. Jill alleges that Tom owes her $757,000 and Robert believes that he is owed over $1.5 million. The court will determine if the involuntary bankruptcy is approved. If the petition goes forward, Tom will address his legal battles under one umbrella. The court will appoint a trustee to oversee negotiations with creditors and determine assets that could be sold to pay back Tom’s debts.
The bankruptcy bombshell is the latest in a long line of financial busts for the once distinguished attorney.
As previously reported—shortly after the news of the breakup broke, class action firm Edelson PC accused the couple of embezzling settlement funds for families of the victims of Lion Air Flight 610, a crash that killed 189 people, in 2018. The law firm accused the couple of staging the split because they “are on the verge of financial collapse and locked in a downward spiral of mounting debts and dwindling funds.”
The suit states—“Tom has resorted to embezzling the proceeds of settlements that should have been directed to his clients—including, as the basis for this Complaint, the widows and orphans who lost loved ones in the tragic crash of Lion Air Flight 610—in order to continue funding his and Erika’s lavish Beverly Hills lifestyles.”
A judge expressed anger over the lawyer’s inability to explain the whereabouts of his clients’ cash during a recent hearing. He found Tom in contempt of court and referred the matter for a possible criminal investigation.
As reported—Tom’s lawyers alleged that the famed attorney suffered a “serious illness” that required hospitalization in recent months. They claimed that the illness was behind the “mistake” that caused the families not to be issued the settlement payments, in full.
Erika has yet to publicly comment on the case, but a source told Us that Erika felt “betrayed,” and that the reality star was “unaware” of the suit’s allegations. She reportedly never believed that her husband “could be capable of doing what he has been accused of in court.”
Join All About the Tea and Attorney Stacy Slotnick tonight on YouTube at 8:30pm ET – as we dive deep into the legal drama surrounding Erika and Tom Girardi. Click the link below.
The RHOBH star filed for divorce from Tom after 21 years of marriage, last month. She is requesting spousal support, which adds another twist to the potential forced bankruptcy case. Tom responded to Erika’s request by demanding that his wife be denied support. Tom has reportedly poured $20 million into his wife’s entertainment company.
The Real Housewives of Beverly Hills is currently in production.