Real Housewives: Bankruptcy Court Edition

I have no idea who the two people are in the photo above, but my lovely wife tells me they are on the show Real Housewives of New Jersey. So why are these degenerates on my blog? Bankruptcy Fraud! It seems these housewives filed bankruptcy back in 2012 and lied on their bankruptcy petition, omitted assets, and were otherwise untruthful. That was a really bad idea.

Why was it such a bad idea? Well, when you sign a bankruptcy petition you are certifying under oath, and subject to the penalties of perjury, that all of the information in your bankruptcy petition is truthful and correct, that all assets and liabilities have been disclosed, and that the petition is being filed in good faith. Most people don’t realize that when they are in my office signing the petition, it is just as serious as if they were in a courtroom on a witness stand. Those penalties of perjury I mentioned earlier, they include up to five years in a federal penitentiary and/or $500,000 dollars in fines. I should also mention that if you lie you can either have your bankruptcy discharge denied, or if it has already been given, it can be revoked and all of those debts will become non-dischargeable.

It looks like Mr. & Mrs. Giudice will each have quite a bit of time in federal prison to consider the error of their ways, and when they get out all of those debts they tried to get rid of will be there waiting for them. I also pretty sure that federal prisons do not have tanning beds or hair styling products, so it looks like these two might have a rough go of it. The moral of this story is don’t screw with the bankruptcy court. The best way to prevent these sorts of things from happening is to be honest with your lawyer. You are paying them for their advice and counsel, if you disclose these things to us ahead of time we can prevent bad things from happening, but hiding it helps no one. You will get caught, and it will be worse than if you had just been up front.