Teresa Giudice Bankruptcy

The Real Housewives of New Jersey’s Teresa Giudice — the petite Italian spitfire who coined one of our favorite catchphrases: “Prostitution Whore” — is breaking the silence on her dire financial situation on the heels of reports that she and her husband Joe filed for bankruptcy last October.

Teresa and Joe, a contractor, have been crippled by a mountain of more than $8.5 million in debt that includes an unpaid mortgage, credit card bills, and renovation obligations. Court documents unearthed by Star Magazine last week revealed that Joe — who lets Teresa spend thousands of dollars a day on herself and the couple’s four daughters (Gia, Gabriella, Milania, and Audriana) — earns just $3,250 a month as owner of G&G Stucco and Stone Specialist. He pockets an additional $10,000 a month from his wealthy family. Teresa earns a monthly salary of $3,333 for her exploits on the RHOJ.

The couple are further burdened with $6.7 million in mortgage debt for the various properties they own. Teresa also owes nearly $100,000 on more than a dozen charge accounts at high-end department stores.

Teresa says her family is taking financial ruin as a learning experience.

“While this is a personal matter, I realize that certain aspects of my private life will always be subject to scrutiny and distortion,” the Franklin Lakes socialite and mother of four said Monday. “What is true is that due to the economy, most of my husband’s real estate ventures failed despite his hard work and effort. As a result, we looked to the Bankruptcy Court for a ‘fresh start.’ When people fall, the way to success is to get up and learn from our mistakes. We are in that process.”

The Giudice have been ordered to undergo credit counseling, and were awarded a temporary stay on payments for their Cadillac Escalade and mortgage payments for properties.

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