Jacquelina Laurita seems to believe there is a material difference between seeking bankruptcy protection versus being forced into bankruptcy by creditors who are owed millions of dollars.
Faux Reality is the Lauritas have not sought personal protection from the bankruptcy court. The reality is that the reason the Lauritas have not sought such protection is because their alleged actions have been so heinous that the law does not afford them such protection.
A fundamental goal of federal bankruptcy laws is to give the honest, but unfortunate debtor an opportunity to “start fresh” when the burdens of debt become overwhelming. It is a right of Congress granted under Article 1, Section 8 of the United States Constitution. AN HONEST DEBTOR.
The law refuses to allow bankruptcy protections to extend to those found to have committed fraud, embezzlement, larceny, conversion, etc. The United States Trustee has charged the Lauritas with pilfering Signature Apparel, diverting, embezzling, converting millions of dollars to fund their lavish and opulent lifestyle.
According to the Complaint, in the years between 2007 and 2009, the Lauritas used funds as follows:
In addition to the aforementioned expenses, Chris Laurita was alleged to have diverted $2.8 million dollars for his personal use. The US Trustee has asserted his right to amend the Complaint to include additional charges once he completes the discovery process.
So perhaps Jacqueline Laurita should be more concerned about how her lifestyle was funded for the past several years and less concerned about voluntary versus involuntary bankruptcy.