New Jersey residents who are struggling to pay their bills while making modest salaries may be surprised every time they hear that a TV or movie star is experiencing debt troubles. The fact is, however, that anyone can find themselves in a debt bind that requires bankruptcy to resolve. That said, one TV star couple’s recent experience highlights the fact that personal bankruptcy is a serious matter that must be handled honestly and appropriately.
In a recent case, two stars from the Real Housewives of New Jersey, Teresa and Joe Giudice, were involved in legal complications surrounding their personal bankruptcy filing. The couple faced allegations that they tried to use the bankruptcy process to hide their fortune after exaggerating their income during a loan application. They were also accused of fabricating their W-2 forms and tax returns.
The duo was accused of bankruptcy fraud, among other federal violations. Ultimately, they pleaded guilty to bankruptcy fraud, mail fraud conspiracy and failure to pay their taxes. Now, the man could face up to 46 months in prison and the woman could face up to 27 months in prison for the alleged fraud .
This case highlights the importance of following sound professional counsel during the personal bankruptcy process. While the average individual who files for bankruptcy protection in New Jersey is honest and would not engage in fraudulent activity, one must still be careful to satisfy all requirements under the filing so as to avoid financial repercussions at a later time. By following the law and using bankruptcy appropriately, individuals can improve their financial situation exponentially in order to live more secure and productive lives.
Source: NBC New York, “Real Housewives of New Jersey Stars Owe $13.4 Million: Report“, , April 10, 2014