Todd Chrisley, star of USA Network’s Chrisley Knows Best, filed for bankruptcy relief under Chapter 7 of the Bankruptcy Code on August 31, 2012. Once again another reality show meant to highlight the lifestyles of the rich and fabulous has instead introduced us to a person who has not only found it necessary to file for bankruptcy relief but, allegedly, done so in a manner intended to defraud his creditors. According to Radar Online, Chrisley’s “bitter bankruptcy case” is still ongoing in 2014 and is heating up over allegations by the Chapter 7 Trustee that Chrisley fraudulently conveyed his interest in insurance proceeds payable “on a purported burglary” to his wife who did not join him in the filing of his bankruptcy petition. In his investigation so far, the Chapter 7 Trustee believes the evidence may show that Chrisley and his wife back dated a prenuptial agreement they rely upon to substantiate the transfer of the insurance proceeds. Further, Chrisley describes his valuable couture wardrobe with great pride on the reality show but valued the same clothing for a few hundred dollars in his bankruptcy schedules. As I have written in my previous blogs regarding Teresa Guidice, how you portray yourself in a reality show and how your portray yourself in the schedules of your bankruptcy petition better be the same or you will run a substantial risk of criminal prosecution for bankruptcy fraud.
It also appears Chrisley’s bankruptcy has embroiled his in laws in the trouble as well. The FDIC sued a Georgia bank that approved a $10 million dollar loan to the Chrisleys in 2006. Chrisley’s mother in law just happened to be the Vice President of Operations of this bank. According to Radar Online, a total of $6,532 has been paid on the loan by the Chrisleys since the loan was originated in 2006.
If you are considering a filing for bankruptcy relief and wish to consult with a qualified bankruptcy attorney about your options, please contact one of our locations nearest you in Alabama, Mississippi or Tennessee for a free, confidential consultation.