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Bankruptcy case may not be over for reality couple

The choice to file for bankruptcy in Washington, D.C., is not an easy one to make. For some people, it signifies admitting that they have financial situations that they cannot handle. For others who are in the public eye, it is seen as an airing of their private affairs. Additionally, once the decision is made, they have to go through the bankruptcy process and that includes putting together a complete picture of their income and assets.

Unfortunately for reality couple, Joe and Teresa Giudice, they both ended up pleading guilty to fraud relating to the bankruptcy they attempted to file. The charges came after it was revealed that they failed to include a luxury sports car, salary from the wife’s reality show and other income and properties. As a result of the deception the couple withdrew their bankruptcy filing.

However, a lawsuit filed by Ms. Giudice against their bankruptcy attorney has led to a new motion to the court to reopen the bankruptcy. The issue that could decide the motion is whether the Giudice’s attorney committed the alleged malpractice after or prior to filing the bankruptcy. The motion was filed by an attorney who represents the Giudice’s creditors. It is said that the couple owed their creditors $13.4 million when they withdrew their bankruptcy. It is unknown how much they own their creditors at this time but they did lose one of their homes to foreclosure.

Bankruptcy can provide people with a clean financial slate, but it can be a complex and confusing process. Therefore, they may want to meet with and enlist the help of an experienced attorney.

Source: NJ.com, “Lawyer for Teresa Giudice’s creditors wants to reopen bankruptcy case,” Vicki Hyman, May 3, 2016

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