Lying Bankrupt Celebrities?

I have blogged about these two bankrupt celebrities before,

Bankrupt celebrity
no longer Bankrupt celebrity Gary Dourdan

and they are both back in the news, one for having his

bankruptcy dismissed, and one for fighting a motion to

re-open her bankruptcy case.

Gary Dourdan Celebrity Bankruptcy

From CSI Vegas, we start with Gary Dourdan, who filed a

Chapter 11 bankruptcy last year.

The linked to article says the Trustee filed a motion to dismiss  his celebrity bankruptcy case, but, you are your own trustee in Chapter 11.  The motion was filed by the United States Trustee, part of the Department of Justice, which has oversight of all Chapter 11 cases.

The celebrity bankruptcy dismissal motion was based on not filing tax returns, and not paying post-petition taxes.  That is, taxes that were incurred AFTER he filed his  Chapter 11 bankruptcy.

Yes, everyone has to file tax returns, and, pay taxes.  But when you are getting relief from all your creditors, in order to reorganize under Chapter 11, or, Chapter 13 bankruptcy, for that matter, you should not be falling further behind, especially on income taxes.

The U. S. Trustee cannot discharge their duty to monitor a Chapter 11 case, unless the tax returns are current.

Falling behind on post-petition taxes is a guaranteed way to get a U. S. Trustee Motion to Dismiss.

Teresa Guidice Celebrity Bankruptcy

At the other end of the spectrum, Teresa and her husband filed a Chapter 7 bankruptcy, which was tossed for fraud, as massive assets and income were somehow left off her sworn celebrity bankruptcy paperwork.

She and her husband are suing their celebrity bankruptcy lawyer for the false statements in their case.

The lawyer for her creditors thinks they should get paid from any proceeds from that lawsuit, so he asked the bankruptcy court to re-open the dismissed case.

“Real Housewives of New Jersey” star Teresa Giudice has paid off or is in the process of paying off the vast bulk of her creditors, her lawyers told a federal judge Tuesday, in an attempt to block the reopening of the bankruptcy case that helped land her in prison for a year for fraud.

Bankruptcy courts have wide discretion to re-open cases, and the Court agreed that this is a good enough reason, without yet determining the issue of who gets any malpractice suit proceeds.

ALWAYS TELL THE TRUTH TO YOUR LAWYER!  and do not sign legal papers that you have not read, or, are incorrect in any way.

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