bankruptcy attorneyMany people don’t realize that there are many factors that can contribute to your bankruptcy request being denied.  One of the most common reasons is prior criminal charges.  There were a couple of celebrities from a television show called, “Real Housewives” whose bankruptcy applications were denied.

The Culprits

The two applicants whose requests for bankruptcy were denied were Teresa and Guiseppe Gudice.  Apparently, they only repaid a tiny portion of their massive $13 million debt.  Their bankruptcy trustee reported that they only repaid about $7,500 of the total debt.

Filing Details

When the couple filed for bankruptcy, they claimed that the reason was the downturn in the economy, which botched a few of their real estate deals.  They initially filed for Chapter 7 bankruptcy in 2009, claiming that they had outstanding debt that they were unable to repay that amounted to about $11 million.

After racking up their multi-million dollar bills, they attempted to repay a fraction of it, but all that money went towards lawyer’s fees.  The person who was in charge of managing their bankruptcy application and case, the trustee, released a report that showed a total remaining balance of $13.4 million dollars.  When the judge who was overseeing the case evaluated the application and processed the evidence and the fact that they were facing criminal charges, he denied their request to relieve them of debt and issue a cease and desist for creditors.

Assets and Creditors

The celebrity couple reportedly has assets that are valued at a little over $2 million.  These assets include a large home, furniture, a high end SUV, and investments in personal and commercial real estate companies.  Based on the liens and additional costs, their combined net value is just shy of 175 thousand.

Their debt as reported to the bankruptcy courts stems from several creditors, including the Internal Revenue Service (IRS) and Wells Fargo.