Teresa Giudice has confirmed a recent report that her family is nearly $12 million in debt and filed for bankruptcy last fall.
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"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.'"
Giudice was responding to a Saturday RadarOnline report that claimed she and her husband filed a bankruptcy petition with the U.S. Bankruptcy Court in Newark, NJ in October that listed $11.8 million in debts.
That total includes $5.8 million on various business investments made by Joe, $2.6 million in mortgages on three homes, $12,000 owed to a fertility clinic, and $104,000 in credit card bills, according to RadarOnline.
Court documents obtained by People confirm that the couple did file for Chapter 7 bankruptcy last October, which requires liquidation of assets in order to pay creditors.
While the couple's assets are listed as $2,261,150, their liabilities are at $8,709,831.34, according to People.
In addition to liquidating their assets, People reported the Giudices also had to undergo credit counseling and were awarded a temporary stay on payments for their Cadillac Escalade and mortgage payments for properties.
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.
"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."
About The Author: Christopher Rocchio
