Teresa and Joe Giudice have finally received some good news.
According to new court documents, the Real Housewives of New Jersey stars will get a clean slate from the bankruptcy judge. By paying $7,500 to creditors, the couple will be wiped clean of more than $13 million in debts.
The documents also shed light on how the Giudices were able to live their seemingly lavish life as seen on the hit reality show.
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Their trick? Having pretty much no equity in their extravagant properties and possessions.
Equity is the amount of money one has invested in his/her assets; in other words, the value of a possession—be it a house, a car, etc.—minus the amount loaned to someone to purchase it.
The Giudices’ home is valued at $1.7 million, but they have a mere $140,000 in equity. Additionally, they have two other properties with no equity whatsoever.
Additionally, their car collection, which includes a Maserati, an Escalade and a Ford 350, and their miscellaneous “toys”—such as a Sea-Doo boat, a Kawasaki quad and 2 go carts—have no equity whatsoever.
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While this is seemingly good news for Teresa and Joe—as they were not only able to deceive the public into thinking they were wealthier, but they’re also being granted a clean slate from the bankruptcy judge—this, however, is bad for their creditors.
The five banks that loaned the couple more than a million bucks will walk away with nothing—Wachovia Bank alone will be out about $5.3 dollars.
Of course, it isn’t exactly smooth sailing for Teresa and Joe.
Four months after they were indicted on 41 counts of fraud, the couple pleaded guilty to nine felony charges, admitting they engaged in a nearly decade-long scheme to defraud banks, the IRS and bankruptcy court of millions.
Teresa and Joe’s sentencing is scheduled for July 8.
TMZ was first to report the contents of the court documents.