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Teresa Giudice Bankruptcy Case: ‘RHONJ’ Star Reaches Settlement With Former Lawyer

By Mary Jane
Published on: 00:25 PST, Nov 4, 2016

Teresa Giudice revealed that she had filed for bankruptcy back in 2009, when it came out that she and her husband owed $13 million. It was this bankruptcy that started the entire fraud investigation and her husband is currently behind bars, serving time for the crimes he’s committed. But the Giudices didn’t get a lawyer who had their best interests at heart and Teresa has often talked about how their lawyer screwed them over. This isn’t the same lawyer, who is driving them to and from the prison and stops in to check on the family. Instead, this bankruptcy lawyer is named James Kridel and Teresa filed a lawsuit against him this year.

According to a new Radar Online report, Teresa Giudice had originally settled her bankruptcy lawsuit back in 2014, but she opened up the case against this year after she filed a malpractice lawsuit against Kridel back in May. She filed a $5 million malpractice lawsuit against him and it sounds like he chose to settle out of court rather than go through the legal system with her again. Court documents filed on November 1 shows that she has reached a deal with him and the judge just needs to sign off on the ruling on December 6.

But this doesn’t mean that Teresa Giudice can store $5 million in her pocket. Instead, the money will be distributed to the creditors who are still outstanding with her in regards to her bankruptcy and the fraud case. Apparently, the money will also cover administrative costs associated with this lawsuit and the payment will be distributed. If anything is left over, Teresa Giudice will receive it. Right now, the legal status of the case is open, but if the judge signs it next month, the case will be closed once again. And hopefully for the Giudice family, it will be closed for good.

When Joe Giudice was taking care of his family on his own, he was working to pay off as many of his creditors as he could. Teresa was serving her 13 months behind bars, but she was released early so the family could spend some time together before Joe turned himself in. And when Teresa was released, she revealed that she wanted to work hard on a yoga empire and rank in close to $40 million.

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“For a long time before he left, I tried to stay positive as much as I could for Joe and the girls, but I could never fully put it out of my mind. I always knew that horrible day was coming,” Teresa Giudice wrote in her Bravo blog the day she had to relive the episode where her husband, Joe Giudice, had to turn himself in.

“I wasn’t planning on driving with Joe to the prison but ended up going at the last minute. It was too hard for me to say goodbye to him at the house. I wanted to be with him up until the moment when he had to walk into the prison doors. I wanted to see him go in myself. I wanted to make sure he was safe,” Teresa explains, according to Bravo.

Giudice was thankful to have the support of Melissa Gorga and her own brother Joe, who both showed up to be there for them.

“When we did say goodbye, it was very, very hard. As I said on the show, I felt drained the whole day. It still is hard with him being away, but we talk to Joe and see him as much as we can. We are getting through this, like we have gotten through everything else -– with prayers, strength and love,” Teresa Giudice explains, sharing that it is still tough for the family to live without Joe.

What do you think of Teresa Giudice settling the family’s debt while Joe is away serving his time in prison?

[Featured Image by Dimitrios Kambouris/Getty Images for Mohegan Sun]

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