Joe Giudice Takes The Fifth, Begs Off Bankruptcy

NJ.com:

Never mind! “Real Housewives of New Jersey” husband Joe Giudice — “Juicy Joe” to wife Teresa -- abandoned his quest to have his millions of dollars of debts forgiven in federal bankruptcy court.


He made the about-face after invoking the Fifth Amendment protection against self-incrimination when questioned by the trustee for his creditors about assets, income and business interests he is accused of hiding from the court, according to court papers obtained by The Star-Ledger this week.


U.S. Bankruptcy Court Judge Morris Stern signed off on a settlement between Giudice and the trustee, John Sywilok. The agreement does not apply to Teresa Giudice, who is still pursuing a discharge of her debts.


According to the court order, Giudice consulted with a criminal defense lawyer before taking the Fifth. “The defendant Giuseppe Giudice acknowledges his desire to resolve the matter without the need for further inquiry or litigation, and without making any further admissions,” the court papers read.


Generally, if a trustee discovers that a debtor is concealing assets or income, he or she would make a criminal referral to the U.S. Attorney’s Office and the bankruptcy fraud unit of the U.S. Trustee Program, said Millburn bankruptcy lawyer Leonard C. Walczyk. “They are really cracking down on bankruptcy fraud,” he said. “It is a real hot issue.”