Thomas Girardi is headed into bankruptcy, whether he likes it or not, plus a breakdown of how this will affect his wife Erika Jayne‘s assets.
In federal court on Tuesday, a judge approved a motion filed by creditors of the attorney and his Real Housewives of Beverly Hills star wife, Erika, who requested a trustee be appointed to divide the assets of Thomas and his firm and settle his many debts.
On January 5, The Blast confirmed the court was moving forward with an involuntary Chapter 7 bankruptcy and noted that the appointed trustee would be able to seize property and pay off the creditors Thomas owes.
In a motion filed last month, numerous creditors, including Thomas’ former firm partners, Robert Keese and Jill O’Callahan, asked a judge to name a trustee to take control of his’ assets, which are currently frozen, so that his past due balances don’t go unpaid.
One creditor explained, “If an interim trustee is not immediately appointed to take control of Debtor’s files and retain counsel to evaluate Debtor’s cases and/or continue to prosecute cases, I believe there will be a substantial amount of damage to Debtor’s clients and Debtor and/or the Estate will lose the opportunity to collect substantial attorneys’ fees which can be used to pay creditors.”
“The debtor is generally not paying such debtor’s debts as they become due,” their court documents continued.
Another creditor accused Thomas of taking out loans to fund his and Erika’s “lavish lifestyle.”
“Having secured tens of 27 million dollars in loan proceeds (upon information and belief, a total of more than $39,000,000), from five different lenders, GK and Girardi had created a web of deceit surrounding the law firm, its financing and its collateral that was bound to disastrously unravel which it did,” the creditor alleged.
While the judge has signed off on appointing a trustee, that trustee has not yet been named and Thomas has yet to file documents opposing the ruling.
Thomas has also not yet hired a lawyer to defend him amid the bankruptcy proceedings.
Following Tuesday’s court date, attorney Ronald Richards shared documents confirming the judge’s order.
“Breaking: Here is the signed order appointing a Trustee against Thomas Girardi´s estate which include [Erika Jayne]’s community property estate,” he tweeted.
Breaking: Here is the signed order appointing a Trustee against Thomas Girardi´s estate which include @erikajayne´s community property estate. #RHOBH #GirardiFraud pic.twitter.com/eIXScWB8hB
— Ronald Richards (@RonaldRichards) January 6, 2021
Ronald went on to explain the meaning behind the appointment of an interim trustee.
“It means that now a person picked by the government, confirmed by the court can use the full power of the federal bankruptcy court to take over and administer all the remaining assets of Tom Girardi and his firm, including Erika Girardi’s assets,” he wrote in a series of tweets.
“It is like having the government take over control over your estate for the benefit of people you owe money to. In addition, the trustee can sue anyone who received stolen money or money paid as a preference to an insider like Erika or others and can undue those transfers and claw them back to the Girardi estate,” Ronald continued. “Also the trustee can try and collect attorneys fees that are owed the firm and force compliance by Tom and Erika via contempt powers or the court.”
transfers and claw them back to the Girardi estate. Also the trustee can try and collect attorneys fees that are owed the firm and force compliance by Tom and Erika via contempt powers or the court. Per everyone’s request, I tried to d it down! #RHOBH #GirardiFraud
— Ronald Richards (@RonaldRichards) January 6, 2021
As RHOBH fans may have seen, Erika began selling her designs on a French website weeks ago before a judge demanded she quit doing so and said the property could be deemed as shared assets between her and Thomas.
The Real Housewives of Beverly Hills season 11 is expected to air on Bravo sometime this spring.
Photos Credit: Jeffrey Mayer/MEGA, Sheri Determan/WENN/Alamy
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