Teresa Giudice has confirmed a recent report that her family is nearly $12 million in debt and filed for bankruptcy last fall.
“The Real Housewives of New Jersey” star Teresa Giudice said she and husband Joe are looking at their bankruptcy filing as a “fresh start.”
“While this is a personal matter, I realize that certain aspects of my private life will always be subject to scrutiny and distortion,” Giudice, 38, told People Magazine’s website. “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 reality show couple reportedly filed for Chapter 7 bankruptcy with the U.S. Bankruptcy Court in Newark, N.J., last October. According to court documents, the couple owes $10.85 million to creditors.
In addition to $8.7 million in liabilities, they also are behind $2.6 million in mortgages on their three homes, including the family’s $1.7 million mansion in Towaco, N.J., that is featured on the Bravo reality show.
Joe’s monthly salary of $3,250 as owner of a stone and stucco company, plus Teresa’s monthly $3,333 paycheck from Bravo and “monthly assistance from family members” makes up the family’s 30-day income, totaling $16,583.33. Their expenses, on the other hand, come out to $16,582.
The Real Housewives of New Jersey’s first season had regularly featured Giudice boasting about her family’s lavish lifestyle. In addition to explaining that the couple had decided to custom build a 12,000 square-foot, $1.7 million home because she felt buying a previously-owned home was unclean, she was shown spending tens of thousands on dollars on home furnishings — all of which she had paid for in cash.
The couple subsequently faced foreclosure on their newly built home after their mortgage company filed a complaint in New Jersey Superior Court last October.
Despite the ridiculous shopping sprees Teresa is often seen going on during the show, the couple claim to only spend $400 a month on clothing. Papers show that they owe $104,000 on various store credit cards, including $20,000 to Bloomingdales, Neiman Marcus and Nordstrom. They also are behind $85,000 for home repairs and $12,000 in fertility treatments.
Six months prior to filing for bankruptcy, the couple had to undergo credit counseling and have a budget-related analysis.
Since admitting to the family’s money woes, the table-flipping mother of four said she has learned an important lesson.
“When people fall, the way to success is to get up and learn from our mistakes,” she told People. “We are in that process.”
“Staying positive is the only thing I could do,” Giudice told Us Weekly at Monday’s 4th annual Ladies Night Out benefit in Paterson, NJ.
“I have moral support; I have my daughters and my husband. As long as we’re in good health, that’s all we can do. I think this kind of situation is all over the world.”
