Teresa Giudice of "Real Housewives of New Jersey" Files for Bankruptcy

By: Joyce Lee
Topics: News

Teresa Giudice of Bravo's "Real Housewives of New Jersey" (Personal Photo)

NEW YORK (CBS) "Real Housewives of New Jersey" star Teresa Giudice might be portrayed as living the good life on TV, but bankruptcy court records would disagree.

PICTURES: "Real Housewives," Real Trouble

Back in October, Giudice and her husband, Joe, filed for Chapter 7 with the U.S. Bankruptcy Court in Newark, N.J., People reports.

According to the documents, the two owe nearly $11 million to creditors against their annual household income of $79,000, due to unpaid mortgages, hefty credit card bills and renovation obligations.

"While this is a personal matter, I realize that certain aspects of my private life will always be subject to scrutiny and distortion," Giudice told the magazine in a statement.

"What is true is that due to the economy, most of my husband's real estate ventures failed despite his hard work and effort. As a result, we looked to the Bankruptcy Court for a 'fresh start.'"

The free-spending mother of four is often filmed showering her daughters with lavish shopping sprees and parties, and was once shown holding a stack of cash while furnishing her $1.7 million mansion in Towaca, N.J.

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by rjohannesburg November 9, 2011 12:34 PM EST: To me this sounds like living above their means. $11 million is a lot of debt, especially for only $79,000/yr. I hope they contacted a <a href="http://www.handelonthelaw.com/home/">bankruptcy attorney</a> before filing. Despite the "fresh start" it can give, it also is a pretty serious choice to make, with long-term consequences.; Reply to this comment


by jrey5 September 16, 2011 6:04 PM EDT: I also hope that it will be a good experience for Teresa. I also hope that she has a good bankruptcy attorney. This is going to be a hard time, but they will get through it. Thanks for the article.
http://www.utahlawinfo.com/bankruptcy.htm; Reply to this comment


by BtrWrld August 7, 2011 1:30 PM EDT: This article and the actions of those involved demonstrate the lack of individual responsibility that exists in America today. At one time people were sent to debtors prison when they were unable to pay their bills. Each personal bankruptcy is going up. Yes, there are many reasons but ultimately a significant percentage is related to the lack personal responsibilty. However this lack of responsibility is being demonstrated daily in congress by both parties, like a husband and wife bickering back and forth. We have to raise taxes AND cut spending. We have to show that this generation of Americans is capable of making tough decisions. The Geatest generation brought an end to WWII, this generation needs to bring an end to irresponsible behavior. Take responsibility for your fiancees, your children, your health, etc., stopping blaming others or depending on others to resolve your problems....or maybe we'll just need to bring back debtors prison!; Reply to this comment


by chargats May 17, 2011 1:36 PM EDT: This just goes to show that everyone can be subjected to personal bankruptcy. You see her on the show flaunting all her riches and belongings, but the truth is finally revealed that her family finances is less than perfect. Personal bankruptcy can hit just about anyone these days. http://youcanfilebankruptcy.com; Reply to this comment


by sarasihota September 16, 2010 12:02 AM EDT: WOW now she has to live in a house that someone else lived in....oh soooo disgusting (Isn't that what she said on one of the shows when she was building her house) She is so arrogant and she deserves this!!!; Reply to this comment


by silda614 September 3, 2010 9:10 AM EDT: The repercussions of Teresa's spending can be rather bad on others and not just on her family. She has been spending exhorbitant amounts, all of which, as we now know, was money her husband primarily paid through funds from his business partners, real estate loans, lines of credit. I am also certain that some smaller businesses and individuals are also feeling the effects of their bankruptcy. It is very strange watching a woman ameliorate her current spending limits by telling us how much money she has spent on various things in the past. There is no logical thinking on their part; they live in what I call narcissistic absurdia.; Reply to this comment


by sjtwhy August 30, 2010 6:18 PM EDT: I love how you're going through a bankruptcy and you are traveling to Europe and Joe reacted as a broke man would kicking the suitcase and complaining about how much things cost. Because last year he was throwing money around like it was water. Love how you try to make everything look so cozy about your Banruptcy when you're telling Danielle your house is not in foreclosure but I bet it's part of that Bankrutpcy and we know that note will be hard to pay once they put the arrears on top. We all know how Chapter 7 works relinguish all assets inclunding that half furnished home of yours. I guess I am posting this because you put on such airs and it kinda bothers me.; Reply to this comment


by halcottgirl August 20, 2010 2:41 PM EDT: It serves her right, Teresa is nothing but a phoney, her daughters are brats, her husband thinks it's funny to get a dwi(thank God he didn't kill someone)and the rest of that 'clan' is just as bad. Who paid for EVERYONE to go to Italy----Bravo? Must be nice; Reply to this comment


by blapanese August 12, 2010 1:21 PM EDT: I thought they made way more than that holy cripes no wonder they are filing bankruptcy! My parents make triple that and I drive a Toyota corolla LOL....our house is worth over a mill but we do not have fancy cars, fancy clothing, etc. I think J.crew is the fanciest we get. Which is prob why my folks are not filing for bankruptcy either! Key to not having this issue, do not spend more than you make, sheesh......; Reply to this comment


by Missmommy19 July 28, 2010 5:49 PM EDT: Hopefully this will be a humbling experience for Teresa, Lord knows she needs it. I haven't seen such a shallow, unempathetic, immature individual since I graduated high school.; Reply to this comment