Tom Girardi, the estranged husband of Real Housewives of Beverly Hills star Erika Girardi, and his law firm have been forced into Chapter 7 bankruptcy by his creditors.
According to court documents obtained by The Blast, an involuntary bankruptcy petition was filed by people who are owed money from the 81-year-old lawyer. The case was filed in Federal Court in California.
The documents state, “The debtor is generally not paying such debtor's debts as they become due.” The creditors include his former law partners, Robert Keese and Jill O'Callahan. Jill says she is owed $757,000 and Robert believes Thomas owes him over $1.5 million.
The court will determine if the involuntary bankruptcy is approved. If so, Thomas will have to deal with all of his legal battles in one place. The court will appoint a trustee to be in charge of all negotiations with his creditors and to determine his assets to sell off to pay back his debt, reports the outlet.
The bankruptcy is the latest in a string of financial woes for the once prominent lawyer. As previously reported, the 81-year-old lawyer has been accused of embezzling “at least $2 million in client funds that were due to the families of those killed in the crash of a Boeing jet in Indonesia” in 2018. Griffin told the court that he “could not elaborate on why such an amount was still owed to certain clients or what the status of the remaining settlement proceeds was because Girardi is the sole equity owner of [his firm Girardi Kesse] with sole and exclusive control over the firm’s bank accounts, including its client trust accounts.”
The news comes one month after the Pretty Mess singer filed for divorce from Tom after 21 years of marriage. “After much consideration, I have decided to end my marriage to Tom Girardi,” Erika said in a statement. “This is not a step taken lightly or easily. I have great love and respect for Tom and for our years and the lives we built together. It is my absolute wish to proceed through this process with respect and with the privacy that both Tom and I deserved I request others give us that privacy as well.”
Erika cited irreconcilable differences and is seeking spousal support from Tom. She also wants the court to determine their shared property and confirm that any gifts and inheritances are still hers.
On November 25, Tom requested to terminate the court’s ability to award spousal support to the Real Housewives of Beverly Hills star. He also asked that she pay his attorney’s fees.
Meanwhile, on Wednesday, December 2, Edelson PC sued the pair for fraud and embezzlement. In court documents obtained by Us Weekly, the class action firm alleged that the estranged couple “are on the verge of financial collapse and locked in a downward spiral of mounting debts and dwindling funds” in addition to calling their separation “a sham attempt to fraudulently protect” their money from debt collectors.
Photo Credit: Sara De Boer/startraksphoto.com; Damian Dovarganes/AP/Shutterstock
