June 08, 2010 07:00 AM by Nancy Floyd
News recently broke that Teresa Giudice, star ofÂ Bravo‘sÂ The Real Housewives of New Jersey, and her husband Joe filed for Chapter 7 bankruptcy in October of 2009. The reality star opens up about the tough decision and what she calls “a fresh start.” Keep reading for more details on their recent financial woes…
OnÂ Bravo‘sÂ The Real Housewives of New Jersey, Teresa Giudice and her family seem to be living in the lap of luxury. During the show’s first season, the Giudices were seen moving into their $1.7-million mansion and shopping to their heart’s content. Things turn a drastic turn for the reality family when, in October of 2009, Teresa and her husband, Joe filed for Chapter 7 bankruptcy.
â€œWhile this is a personal matter, I realize that certain aspects of my private life will always be subject to scrutiny and distortion,â€Â The Real Housewives of New Jersey star toldÂ People magazine. â€œWhat is true is that due to the economy, most of my husbandâ€™s real estate ventures failed despite his hard work and effort. As a result, we looked to the Bankruptcy Court for a â€˜fresh start.â€™â€
In addition to filing for Chapter 7 bankruptcy, the Giudices were also required to go through credit counseling. The bankruptcy papers show that the Giudices’ liabilities (estimated at $8.7 million) were vastly larger than their assets (estimated at $2.2 million). Chapter 7 bankruptcy requires them to sell off their assets in order to pay creditors. Despite the major financial setback, Teresa Giudice is optimistic about the future.
â€œWhen people fall, the way to success is to get up and learn from our mistakes,â€ Giudice says. â€œWe are in that process.â€
For more breaking news about celebrities andÂ entertainment visit our sister siteÂ SheKnows.com!
For more Reality TV news on The Real Housewives of New Jersey visitÂ Sir Links A Lot: The Real Housewives of New Jersey. Also, come join us on the new Reality TV Magazine message boards and talk about your favorite show!
Photo Courtesy of Bravo