Teresa Giudice did not disclose $250,000 book advance in bankruptcy protection filing, report says

09/05/2010 by Kristina Lopez

Teresa Giudice is having more bankruptcy woes.

The Real Housewives of New Jersey star has been accused by a lawyer handling the bankruptcy case for the Dept. of Justice that she and her husband did not disclose major assets when they filed for bankruptcy protection, reports the New York Daily News.

New Jersey attorney Roberta DeAngelis filed an objection on Thursday to the couples request for bankruptcy protection from their $11 million debt. A court document alleges that Giudice failed to list a $250,000 book advance received by the reality show star for her "Skinny Italian" cook book. The attorney also claims they hid Giudices ownership of an online boutique TGFabulicious and another company owned by husband Joe.

In the court document, DeAngelis says, "the Defendants have knowingly and fraudulently made false oaths in this case." Giudice's contract with Hyperion - the publishing company behind "Skinny Italian" - was reportedly signed on Oct. 22, 2009, days before the couple's petition for bankruptcy protection.

Though the couple did acknowledge in April that Teresa Giudice received the advance, their legal team failed to put down the amount on court records.

A lawyer for the reality star recently defended a $60,000 spending spree, claiming that the money spent was from the book advance saying she earned it after the bankruptcy filing.

"That was the money she earned as an advance for her book Skinny Italian," attorney Jim Kridel told People magazine. "Since she earned it after the filing, she was absolutely free to spend it. Legally, you are entitled to spend money you earn after a bankruptcy."

Teresa Giudice and her husband Giuseppe "Joe" Giudice listed $10.98 million in debt when they filed for bankruptcy in October and recently put some their "designer home furnishings" and personal items up on the auction block to try and pay some of it off. The auction, which includes the couple's wedding rings and children's toys, was supposed to take place on August 22 but has been postponed to October 3.