Real Housewives of New Jersey’ star Teresa Giudice and her husband Joe have filed for bankruptcy. The couple who live a lavish lifestyle on their Bravo network reality show, are in reality up to their necks in debt. The couple filed for bankruptcy showing that the owed $10.85 million in debt. Bankruptcy documents reveal that while Teresa Giudice spends thousands of dollars on clothes on her reality show, she only earns $79,000 in income from Bravo and is already facing the lost two of her homes to foreclosure. The Giudice family’s $1.8 million home in Towaco, NJ is also in the foreclosure process.

The court papers show that the Giudices’ assets include $2.2 million in real estate – $1.7 million for the lavish Towaco home seen in the series, and the remainder for a small house in Lincoln Park and a beach house in Stafford. But all of the homes have mortgages — in the case of the small homes, several mortgages — which exceed the value of their homes…The Giudices also owe $6.1 million to various and sundry banks, credit card companies, utilities, law offices, and construction outfits, plus nearly $20,000 to Bloomingdale’s, Nordstrom and Neiman Marcus, and about $12,000 to an in vitro fertilization clinic..

According to the bankruptcy filing, Joe Giudice earns $3,250 a month as the owner of his stone and stucco company plus $10,000 a month which is basically coming from family financed loans. The Giudice bankruptcy is a perfect example of what to not do if you want to avoid bankruptcy. This couple obviously does not have a large amount of wealth; but they pretended to have it, and that fantasy has destroyed their finances. They have also been denying the reality of their situation…this bankruptcy should have been filed a long time ago. You don’t go nearly $11 million in debt overnight.