Law Offices of David A. Tilem

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Reality TV star's bankruptcy to be reopened

One of the stars of Real Housewives of New Jersey, Teresa Guidice, recently went through bankruptcy proceedings, but the bankruptcy process ended in her going to prison on a year-long fraud sentence. This week, it was announced that the woman's bankruptcy case would be reopened.

By reopening the bankruptcy proceedings, the reality TV star's creditors could have the ability to make claims against the proceeds that she could receive from a malpractice lawsuit she has filed against her former bankruptcy attorney. According to her representative, Guidice currently has a payment plan set up with the IRS to pay off her $551,563 tax lien. Furthermore, she has established agreements to pay off 27 of her 29 creditors referenced in her bankruptcy filing from 2009. As for the other two creditors, Guidice is negotiating plans to pay off one of them, an infertility clinic. However, she is contesting the other creditor, a construction company.

Guidice's lawyer is arguing that her potential award for malpractice against her ex-attorney should not be taken by her creditors because she has personally suffered from the malpractice. Nevertheless, the potential malpractice recovery is currently nothing more than hypothetical at this point. Meanwhile, Guidice's husband is still in jail for bankruptcy fraud, and mail and wire fraud conspiracy.

The legal battles faced by this family are certainly complicated. Hopefully, they will serve as an example of how important it is to get one's bankruptcy process right the first time. A qualified attorney who is experienced and knowledgeable in bankruptcy law is invaluable when it comes to the suitable navigation of the California bankruptcy process.

Source:, "Judge rules 'RHONJ' star Teresa Giudice's bankruptcy case must be reopened," Vicki Hyman, May 24, 2016

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