After agreeing in October to split a potential legal windfall with her creditors, "Real Housewives of New Jersey" star Teresa Giudice's bankruptcy attorney is now opposing the settlement.
Last year, Giudice filed a lawsuit against Atty. James Kridel for legal malpractice, claiming that his ill advice had led to her conviction for bankruptcy fraud. It can be recalled that the RHONJ star was imprisoned for a year after taking a plea deal for bankruptcy fraud and conspiracy to commit wire and mail fraud. Currently, her husband Joe is serving a 41-month sentence.
John Sywilok, the trustee who represented her creditors in the case, reopened the bankruptcy after Giudice filed suit. This was after his claim that any money that the Giudice couple won in the case should go to the creditors.
The lawyers of Giudice, Anthony Rainone and Carlos Cuevas, settled with Sywilok and agreed that her creditors will get 45 percent of the money, and that Sywilok will join the malpractice case as a plaintiff. This settlement would have ended the bankruptcy saga of the RHONJ star, had Carl Perri not filed a motion in federal bankruptcy court on Tuesday opposing the settlement.
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According to Perri, Kridel's lawyer, Rainone and Cuevas have a conflict of interest with both Sywilok and his attorney. In his motion, he stated that Cuevas and Rainone "have occupied and advocated, and continue to occupy and advocate, interests adverse to the debtor's estate. Indeed, the entire settlement arises from that adversity."
Kridel also remains in denial of Giudice's allegations, even describing in the motion all the allegations made against her as "utter absurdity."
U.S. Bankruptcy Court Judge Stacey Meisel will rule on the case on December 6.