Teresa Giudice bankruptcy case reopened as Real Housewives of New Jersey star tries to keep money from lawsuit against former lawyer out of the hands of her creditors

  • A federal judge ruled to reopen Teresa Giudice's bankruptcy case on Tuesday 
  • The Real Housewives of New Jersey star had hoped to keep money from an upcoming lawsuit she field away from her creditors 
  • Her attorney, Carlos Cuevas, argued with the judge that plans were in place for payments to almost all the creditors who were owed money 
  • 'There may have been a satisfaction of a number of creditors... but the fact remains that creditors still exist,' said Judge Stacey Miesel 
  • Teresa filed her lawsuit against her former bankruptcy attorney James Kridel claiming he misled her during her trial
  • Teresa, 44, and her husband Joe owe 29 creditors money following their 2009 bankruptcy filing and over $500,000 to the IRS 

Teresa Giudice is facing more legal drama after a judge made the decision to reopen the reality star's bankruptcy case.

A federal judge made the ruling on Tuesday despite lawyers for the Real Housewives of New Jersey star arguing that she was in the process of paying back the Internal Revenue Service and over 20 creditors owed money by her and her incarcerated husband Joe.

Teresa, 44, had hoped that because she had repayment plans in place she would be able to pocket the money she received from a pending lawsuit against one of her lawyers and keep it out of the hands of her creditors. 

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Bad news: A federal judge ruled to reopen Teresa Giudice's bankruptcy case on Tuesday (Teresa above in a Bravo promotional shot) 

Bad news: A federal judge ruled to reopen Teresa Giudice's bankruptcy case on Tuesday (Teresa above in a Bravo promotional shot) 

Tough break: The Real Housewives of New Jersey star had hoped to keep money from an upcoming lawsuit she field away from her creditors (Teresa and husband Joe at federal court in November 2013)

Tough break: The Real Housewives of New Jersey star had hoped to keep money from an upcoming lawsuit she field away from her creditors (Teresa and husband Joe at federal court in November 2013)

Big money: Teresa and her husband Joe owe 29 creditors money following their 2009 bankruptcy filing and over $500,000 to the IRS (Teresa above with her daughters Gia, Audriana, Milania and Gabriella celebrating her birthday earlier this week)

Big money: Teresa and her husband Joe owe 29 creditors money following their 2009 bankruptcy filing and over $500,000 to the IRS (Teresa above with her daughters Gia, Audriana, Milania and Gabriella celebrating her birthday earlier this week)

U.S. Bankruptcy Court Judge Stacey L. Meisel said that Teresa could not keep the proceeds she may receive from her upcoming lawsuit against bankruptcy attorney James Kridel because she had not fully paid off all her creditors and was contesting two of the companies demanding money from her and her husband.

NJ.com reports that Teresa's lawyer, Carlos Cuevas, argued with the judge that plans were in place for payments to almost all the creditors who were owed money and said of his client: 'It was always her intent to pay her bills.'

Judge Meisel responded to this by saying: 'Satisfied means paid in full in my book.'

She then added: 'There may have been a satisfaction of a number of creditors ... but the fact remains that creditors still exist.'

This means that all 29 of Teresa's creditors could now be entitled to whatever money she receives from her case against Kridel.

In addition to the creditors Teresa is paying off following her 2009 bankruptcy filing, the reality star and her husband are also taking care of a $551,563 tax lien filed against them by the IRS.

It has been a difficult few months forTeresa as her husband serves time behind bars.

Joe was convicted of bankruptcy fraud in October 2014 and will be facing the possibility of deportation back to Italy when he is released from prison.

Teresa was convicted on similar charge and began serving her sentence at the Federal Correctional Institution in Danbury, Connecticut in January of last year, being released two days before Christmas.

The judge ruled that the couple did not have to report at the same time for the well being of their four daughters - Gia, Gabriella, Milania, and Audriana.

Joe's attorneys are already attempting to fight the possibility of deportation after his sentence, and argued back during the trial that because their client came to the US as an infant from Italy he was not aware that he was not an American citizen.

The judge in that trial also recommended Joe participate in an alcohol program, this after his lawyer, Miles Feinstein said he had a drinking problem and should be sent to rehab rather than prison.

Joe read a letter to the court before he was sentenced, saying: 'I stand here humiliated before the court and my family and society.

'I disgraced many people, including my wife and four daughters. I take full responsibility for my actions. I promise to be a better person.'

Joe, 43, also pleaded guilty to failing to file a tax return for 2004 and acknowledged he didn't file taxes on income of approximately $1 million between 2004 and 2008.

For that he was given a 12-month sentence, but one that will run concurrently with the 41 months he had already received for his other crimes.

There is a chance that Joe's sentence could be shorter, with his wife not serving her full term behind bars.

She's back: The new trailer for Real Housewives of New Jersey premiered on Tuesday (above)

She's back: The new trailer for Real Housewives of New Jersey premiered on Tuesday (above)

Touching: This season viewers will see Teresa returning from prison (above greeting her daughters)

Touching: This season viewers will see Teresa returning from prison (above greeting her daughters)

Teresa's 15-month sentence was ultimately cut short and she was released from prison two days before Christmas after a little less than a year behind bars.

As part of her parole, a portion of the remaining time of her 15-month sentence was served on home detention, during which time she was only allowed to leave for things like pre-approved trips to see the doctor and dentist or attend church services.

She was also allowed to go to see family whenever she wanted, meaning that her house and her brother Joe Gorga's home were two of the few places she could be filmed without running the risk of getting in trouble while starting work on the new season of Real Housewives of New Jersey.

The trailer for that show was released on Tuesday by Bravo. 

Teresa's parole period ended on February 5, at which time she was able to remove her ankle monitor and began the next phase of her punishment, two years of supervised release.  

She is certainly doing her part to bring in money, starting with the release of her autobiographical book Turning the Tables: From Housewife to Inmate and Back Again earlier this year.

The popular, and polarizing, reality star is so important to Bravo that the network also featured her in a special three-episode spin-off series Teresa Checks. In that followed her before she prepared to head off to prison.

Bravo has never confirmed the salaries of any Housewives cast members, but there are reports that Teresa is receiving $1million for the upcoming seventh season of the show. 

She has also found success in the world of cookbooks, releasing three volumes of Italian recipes that all landed on the New York Times Bestsellers list - Skinny Italian, Fabulicious and Fabulicious!: Fast & Fit.

Teresa also released her own line of Bellini cocktails called Fabellini, which she can often be seen toting around to parties and events while filming for Real Housewives. 

 

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