Your tip
RadarOnlineRadarOnline
or
Sign in with lockrMail
BREAKING NEWS
Exclusive

Off The Hook! Teresa Giudice Settles $13.5M Bankruptcy

Teresa Giudice Bankruptcy Settled Closed Again
Source: Getty Images

Nov. 3 2016, Updated 5:55 p.m. ET

Link to FacebookShare to XShare to FlipboardShare to Email
Getting your Trinity Audio player ready...

Teresa Giudice has cleaned up yet another of her legal issues: RadarOnline.com has learned that The Real Housewives of New Jersey star has reached a settlement in her messy bankruptcy case.

Giudice and her husband, Joe, first filed for bankruptcy back in 2009, claiming they were more than $13 million in debt. It was settled in September 2014, but reopened again in May of this year, after she filed a $5 million malpractice lawsuit against her former bankruptcy attorney, James Kridel. Court documents filed in New Jersey on November 1 show, however, that she has reached a tentative deal yet again with her trustee.

Article continues below advertisement

A judge will make a final ruling on December 6. However, the bankruptcy trustee wrote in the court documents obtained by RadarOnline.com that "a settlement was reached" during an October 5 mediation session with the Giudices' team.

READ Teresa's Bombshell Deal

According to the court papers, the tentative deal contains the following points: 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 through settlement or trial" minus "the administrative costs," which the trustee will oversee. The rest will be distributed to her creditors "pursuant to the bankruptcy code," and Teresa will get anything that's left over.

MORE ON:
The Real Housewives of New Jersey

DAILY. BREAKING. CELEBRITY NEWS. ALL FREE.

The trustee must also "approve any settlement of the Kridel suit" and must "be kept advised of all significant developments and status of the case."

The Kridel lawsuit is still ongoing, but if the judge signs off on the proposal next month, the bankruptcy will be officially closed again.

Meanwhile, Joe is still serving his 41-month prison sentence at Fort Dix.

Story developing.

We pay for juicy info! Do you have a story for RadarOnline.com? Email us at tips@radaronline.com, or call us at (866) ON-RADAR (667-2327) any time, day or night.

More From Radar Online

    Opt-out of personalized ads

    © Copyright 2024 RADAR ONLINE™️. A DIVISION OF MYSTIFY ENTERTAINMENT NETWORK INC. RADAR ONLINE is a registered trademark. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service, Privacy Policy and Cookies Policy. People may receive compensation for some links to products and services. Offers may be subject to change without notice.