Bankrupt Real NJ Housewife Teresa Giudice may have effectively canceled out the auction of all of her incredibly tacky household items – by spending a whopping $60,000 in the mere two months since she and her husband filed for bankruptcy. I’m not sure how that works exactly, but apparently items that were purchased by the Giudices after they filed for bankruptcy do not qualify as stuff that can be auctioned by their creditors. Since the Giudices have “exemptions” of post-bankruptcy purchases that conveniently total $52,000, and those exemptions are worth more than the appraised value of all the crap in their house, $51,160, their lawyer believes they’ve squeezed out of having their overpriced luxury goods sold at auction.

As a result, the auction of the Giudice’s stuff has been moved from August 22 to October 3. I’m sure they’ll just stay in that custom made $1.8 million dollar mansion in foreclosure in the meantime. This is unbelievable. This family is $11 million dollars in debt despite declaring earnings of less than $80,000 a year and they’re using legal loopholes to hold on to all the items they purchased that are massively beyond their means.

Here’s the report from Radar that explains how all these financial shenanigans work.

Her lawyer James Kridel told RadarOnline.com exclusively that despite an appraisal of Teresa and her husband Giuseppe’s belongings totaling $51,160, the couple has exemptions totaling about $52,000- which cancels out the proposed auction.

The exemptions mainly center around the argument that the items assessed were bought after the bankruptcy petition was filed. “Unless there’s something that would lead one to believe that they were earned pre-petition, they are not part of the bankruptcy estate and therefore cannot be sold,” Kridel told RadarOnline.com.

The papers filed by Kridel with a New Jersey bankruptcy court include receipts from many of the items assessed for the auction, proving the Giudices purchased them after filing for bankruptcy.

However, John W. Sywilok, an attorney who is seeking to conduct the public auction, highlighted the couple’s finances in a different way, outlining their outrageous shopping sprees before and after their bankruptcy filing.

“These represented purchases totaling approximately $60,000 within approximately 60 days after filling,” Sywilok wrote, exposing the couple’s alleged fiscal irresponsibility. According to Sywilok, weeks before filing for bankruptcy the couple was still spending thousands of dollars on decorating purchases, including $6,000 two days prior to filing to cover a furniture order costing a total of $21,810.

[From Radar Online]

In an appearance on The View earlier this month, Teresa insisted she was not responsible for her family’s debt problems. She said “I always live within my means. Always. The money was coming in from the apartment buildings so we were able to live the lifestyle that we did.” Teresa also claimed that her husband kept her in the dark about their financial situation.

Is this “living within her means” to continue to waste money so she can hold on to frivolous purchases while the people they stole money from get nothing? This is a sleazy way to work the system while continuing to deny any culpability for her actions. I’d rather see a hooker and sex tape star on television than a woman as vile and entitled as this one. If anyone should be fired from RHONJ, it should be Teresa.