Chapter 7 bankruptcy offers protection for those in Summit whose debt threatens to overwhelm them. Should they comply with all of the demands of the court during the time that their bankruptcy is active, then the remainder of those debts not already satisfied through the liquidation of whatever eligible assets they had will be discharged. Yet in order to take full advantage of that protection, one has to be completely upfront with the court during his or her bankruptcy proceedings. This includes disclosing any and all assets they hold to their court-appointed trustee. A failure to do so could leave him or her facing possible criminal charges.
This is exactly the predicament that reality TV star Teresa Giudice and her husband currently find themselves in. When the pair filed for Chapter 7 bankruptcy in 2009, they listed $2.3 million in assets compared to over $11 million in debts. Yet the couple has since admitted that they purposely withheld assets from their trustee. This led them to plead guilty to a series of criminal charges, among which included bankruptcy fraud. To further compound their troubles, the judge overseeing their case has refused to discharge their bankruptcy debts, which now total over $13 million.
Many have used personal bankruptcy to free themselves from overwhelming debt and re-start their financial lives with a fresh footing. The last thing one wants after having gone through this ordeal is having to still pay those debts thanks to their not fulfilling all of the obligations associated with their case. To ensure that one keeps from making any mistakes during his or her bankruptcy, he or she may wish to work closely with a bankruptcy attorney during the entire process.
Source: NorthJersey.com " 'Real Housewives' stars Teresa, Joe Giudice paid off $7,500, still owe $13.4 million" Karen Sudol, Apr. 09, 2014