‘RHOC’ Newbie Katie Ginella’s 2013 Bankruptcy Exposed: $900 a Month Income, Massive Credit Card Debt

Real Housewives of Orange County newbie Katie Ginella filed for bankruptcy years before she made her Bravo debut, and she and her ex-husband were drowning in debt, In Touch can exclusively report.

According to court documents obtained by In Touch, Katie, 40, who was known as Katie Sundseth at the time, and her ex-husband Andrew Sundseth, filed for Chapter 7 in June 2013.

The duo said they had $108,000 in assets and $480,000 in liabilities.

The couple lived in Georgia at the time with their three children.

At the time, Katie said she only earned $3,600 for the first six months of 2013 and pulled in a total of $20,814 for 2012.

Katie and her ex listed their assets as their family home in Duluth, Georgia, two bank accounts with $1,680, $2,500 worth of household items, $1,000 in clothing, $500 in jewelry, and a 401k worth $4,250.

The couple also owned a 2000 Honda Odyssey worth $2,000 and a 2006 Scion XB valued at $7,000.

The petition listed that the debts were $9,000 owed on the Scion, $153,000 owed on the home, $4,000 to the IRS, and an unknown amount to the Georgia Department of Revenue.

Other debts included over $200,000 in student loans, over $50,000 in credit card debt. Katie listed her occupation as a “model” who worked as an independent contractor. Her then-husband worked as a project manager and had been at the same company for seven years. Andrew pulled in around $5,250 a month before taxes, while she averaged around $900 in income.

They earned a combined total of $4,861 after taxes.

However, they said their monthly expenses, including $1,500 a month on their home payment, came to $4,856, leaving them in the red every month.

At the time, they were paying $500 on the student loans and $1,000 on food for the family every month. The duo listed their three children in the paperwork.

In October 2013, the case was closed and the judge signed off on Katie and Andrew’s debt being discharged.

The couple split shortly after and finalized their divorce in 2016. Per their 2016 agreement, Andrew was awarded primary physical and legal custody of their kids.

Katie was ordered to pay monthly child support.

As In Touch first reported, Katie and Andrew fought in court for years after the breakup.

In 2018, Katie asked the court to modify the agreement, claiming her ex was being emotionally abusive to the children. She demanded primary physical and legal custody of the children and for the child support to be terminated.

Andrew denied all allegations of wrongdoing.

The two eventually reached another agreement which awarded Katie custody of their daughter Kaili, and custody of their boys, Andrew and Maxon.

Katie remarried to a man named Matt Ginella and they have a son named Bandon.

On top of the past drama with her ex, Katie was also recently sued for $5 million by a man named Chad Ruskey, who claims she worked with two others to steal his business idea.

The man said he created a golf ball that could be filled with liquor. He said he took the idea to two people who then brought Katie into the mix.

He claimed the two people, along with Katie, took his idea and launched their own business behind his back.

Daniel Do-Khanh, a lawyer representing Kati and her business partners, told In Touch, “Katie Ginella, along with Dolores and George Salman, have not been served with any lawsuit by Chad Ruskey against them at this time. Ms. Ginella and the Salmans were previously contacted by Mr. Ruskey’s attorney about claims of being in breach of a partnership to develop a golf-ball shot glass business, and they denied having any business ties or arrangements with Mr. Ruskey. Mr. Ruskey’s claim to a unique idea of a golf-ball shot glass is unfounded. Ms. Ginella, in particular, has had zero dealings or prior contact with Mr. Ruskey, and will vigorously defend against being frivolously named in the lawsuit.”