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Teresa Giudice’s bankruptcy case update: Judge rules it will be reopened

26 May 2016 Entertainment News

Fourth Estate Staff

Trenton, NJ, United States (4E) – Despite Teresa Giudice spending more than a year behind bars for fraud charges, a New Jersey judge ruled that her bankruptcy case will be reopened.

“Real Housewives of New Jersey” star and her husband Joe were sent to jail on 39 counts of various fraud such as bankruptcy fraud and bank fraud. These charges stemmed from a bankruptcy filing back in October 2009 but was dropped in 2011. The two pleaded guilty to the charges in 2014.

The two have been using a payment plan in order to pay off their owed back taxes but U.S. Bankruptcy Court Judge Stacey L. Meisel said on Tuesday that the proceedings will be reopened. Meisel added, “Satisfied means paid in full in my book. There may have been a satisfaction of a number of creditors… but the fact remains that creditors still exist.”

The couple also filed a lawsuit against their former bankruptcy attorney James Kridel . The couple alleges that he mishandled their 2009 bankruptcy filing, which was the basis of the 2013 federal fraud case that led to them serving prison time. The two won the case against Kridel .

Michael Kopelman , the lawyer representing the creditors, argued that the winnings earned from the Kridel case should also be given to the creditors. Kopelman said after the case was reopened, "[Judge Meisel ] did not make a ruling as to whether or not Ms. Giudice is the owner of the claims underlying the Kridel lawsuit. So, Ms. Giudice is now in discussions with her bankruptcy trustee to try to reach a settlement concerning the ownership of the claims underlying the Kridel lawsuit."

Giudice has since released a book and appeared on television after her prison sentence. The money from these activities are considered post-petition funds so they are not part of the bankruptcy case proceedings.

The judge is set to review the case in 90 days. Giudice was not present at the hearing and has not released any statement regarding the matter.