Theresa Giudice’s bankruptcy keeps on providing
blog fodder – for me and other bankruptcy attorneys.
Bankruptcy Settlement of Reality TV Star
This is just too juicy. Not from a salacious point of view, but, so many legal issues in this hot mess of a case.
I blogged earlier about her bankrupt Teresa Giudice blaming her bankruptcy lawyer for the numerous, and serious, errors in her bankruptcy case.
Well, that does not work. When you sign your bankruptcy papers, you are signing under penalty of perjury. You have to read and understand anything that you sign with that kind of penalty hanging over your head. Like your tax returns.
Giudice, who lives in Montville Township, served nearly a year in prison after taking a plea deal for bankruptcy fraud and conspiracy to commit wire and mail fraud, the latter pertaining to a mortgage scheme that predated the bankruptcy. Her husband Joe is currently serving a 41-month sentence.
So, her bankruptcy case was closed. Finished. Put a fork in it.
Wait a minute – she sued her bankruptcy attorney –
Giudice filed suit against her former bankruptcy attorney James Kridel last year for legal malpractice, claiming the Clifton lawyer’s bad advice and mistakes led to her conviction for bankruptcy fraud.
Well, OK, not sure how that works, after you pled guilty.
But, her Chapter 7 bankruptcy trustee, who is in charge of gathering non-exempt assets for the benefit of creditors, thinks her creditors should get any proceeds of that malpractice suit.
After she filed suit, however, John Sywilok, the trustee who represented her creditors in the bankruptcy case, successfully reopened the bankruptcy, after claiming any money the couple won in the Kridel case should go to their creditors.
So, that issue was mediated, and bankrupt Teresa Giudice and her bankruptcy trustee agreed that the trustee would get, on behalf of her creditors, 45% of any net recovery in the malpractice suit.
But, this settlement is
So, when the parties arguing make a deal, that should be the end, right?
Not so fast.
In bankruptcy cases, most settlements require notice, with an opportunity to object, to all interested parties. That would be the trustee, the U. S. Trustee, and all creditors.
And, in this case, the former bankrupt Teresa Giudice’s bankruptcy attorney.
On Tuesday, Kridel’s lawyer Carl Perri filed a motion in federal bankruptcy court objecting to the settlement on the grounds that Rainone and Cuevas have a conflict of interest with Sywilok and his attorney.
Cuevas and Rainone, the motion says, “have occupied and advocated, and continue to occupy and advocate, interests adverse to the debtor’s estate. Indeed, the entire Settlement arises from that adversity.” Perri did not return a call for comment.
Something tells me I will be blogging on bankrupt Teresa Giudice again in the future.