In Addition to Foreclosure, Teresa Giudice Faces Lawsuit, Public Auction of Her Possessions and Possible Jail Time

Real Housewives of New Jersey’s Teresa Giudice is facing more headaches than just foreclosure and bankruptcy these days. How about a lawsuit, watching her possessions being auctioned off on Aug. 22, and possible prison time?

According to the Wall Street Journal, the Chapter 7 trustee in charge of documenting the Giudice’s assets and distribution of proceeds to creditors, John Sywilok, claims the Giudices hid documents about their finances and business transactions, including interests in a pizza parlor, laundromat, Teresa’s TG Fabulicious clothing line, and her “Skinny Italian” cookbook. Most importantly, Sywilok accuses the Giudice’s of making false statements under oath about their assets, income and expenses. For this, Sywilok has filed a lawsuit to prevent them from taking a debt discharge, which is usually available to bankruptcy victims.

Sywilok is planning a public auction of the Giudice’s property on Aug. 22 (location not determined, although one blogger says it will be at the Giudice’s Towaco house, below).

Update (7/26/10): Here is the auction website with a list and photos of Giudice’s belongings that will be auctioned.

Update (8/16/10): Judge delays bankruptcy auction of the Giudice’s until Oct. 3.

> See complaint papers filed against the Giudice’s

> Take a look inside Teresa Giudice’s house

> See more celebrity foreclosures