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Celebrity Bankruptcy: Giudice Bankruptcy Auction Made Private

Posted By admin || 4-Oct-2010

Giudice Bankruptcy Auction Made Private

After filing for bankruptcy last October, Teresa and Joe Giudice, celebrity stars of Real Housewives of New Jersey," were scheduled to have a bankruptcy auction; but the couple and their attorney were able to convince a bankruptcy court that the auction would earn more money if it were private.

A lawyer for the couple says the auction has now been canceled entirely in favor of a private sale. The attorney explained that the couple stands to earn much more with a private sale.

"When the sale is conducted, the Giudices would get $52,000, because they are allowed that as exemptions," he told the magazine. "There would have been a shortfall. What if they got $30,000, but they owed $52,000 to the Giudices? It wouldn't help, so we said why not have a private sale? It would be best for the state, the creditors, the trustees and the Giudices."

The public bankruptcy auction was initially criticized by the Giudices because it included many private items such as their flat-screen TVs and they feared that it would turn into a media circus and public spectacle.  But the argument presented by their lawyer is a good reason to have a private sale.  Because the bankruptcy trustee is charged with making sure that the profits from any sale are maximized, failing to do all he can to get the best price for the items on auction would be a failure to protect the interests of the creditors.  And while the Giudices will lose some of their items, they will be able to walk away with $52,000 allowed by their bankruptcy exemptions, giving them an opportunity to replace those items with less expensive substitutes.

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