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'The Real Housewives of New Jersey' Danielle Staub Bankruptcy Settled After Teresa Giudice Fraud Scandal

Danielle Staub settled part of her bankruptcy debt immediately after Teresa Giudice was indicted for 39 charges for financial fraud

By Sonya Magett, EnStars on Aug 01, 2013 09:41 AM EDT
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Teresa and Joe Giudice
Teresa and Joe Giudice (Photo : Facebook)

Bravo's former The Real Housewives of New Jersey star, Danielle Staub, settled part of her bankruptcy debt immediately after reality star Teresa Giudice was indicted for 39 charges of financial fraud.

TMZ reported early Wednesday that Staub paid $35,000 toward her creditors so that she does not suffer a similiar fate as Giudice, who was her nemesis on the reality series. According to the report, legal documents were filed against the former reality star for attempting to hide her assets --what the Giudices are in trouble for -- and when it was uncovered, Staub decided to begin settleing her debt this month.

NJ.com reported that Staub, who exited TRHONJ after her appearance on seasons 1 and 2, filed for Chapter 7 bankruptcy in June 2012. She had $1.9 million in liabilities and had only earned $63,000 that year from Dial-A-Star and Famous Food, the latter being a reality show she won.

Staub's liabilities at the time of her filing was her mansion in Wayne, N.J. that valued at $900,000 and the $100,000 tax bill she owed to the IRS. She has made several attempts to sell the home while she currently lives in condominium in Bergen County.

Giudice and her husband Joe Giudice were indicted for 39 charges for a wide range of financial offenses - including IRS, bank mortgage loan fraud, wire and loan fraud, announced by U.S. District Attorney Paul J. Fishman.

See the full list of charges here.

When the couple appeared in a Newark, N.J.. court room on Tuesday, U.S. Magistrate Judge Cathy L. Walder read them their charges, asked them to submit their passports and told them their travel was restricted to New York and New Jersey. After the judge advised the couple of their rights, she set bail for $500,000 each. The couple was released on $500,000 unsecured bail bonds.

Joe almost got in trouble with his lawyer Tuesday morning when he smacked a paparazzi camera outside of the courtroom. See the video here.

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