A judge has indicated that he is inclined to dismiss Rudy Giuliani’s bankruptcy case after lawyers representing the former New York City mayor and his major creditors, two ex-Georgia election workers who secured a $148 million defamation judgment against him, have agreed that this would be the best course of action. The case has been embroiled in claims that Giuliani is defying bankruptcy laws and potentially concealing assets. Dismissing the case would halt his pursuit of bankruptcy protection, but it would not absolve him of his debts. Creditors would still be able to seek other legal avenues to recover at least a portion of the money owed to them, such as obtaining a court order to seize his properties and assets.
The U.S. Bankruptcy Judge Sean Lane expressed his intention to make a decision by the end of the week, scheduling a hearing for 1 p.m. on Friday where he may issue his ruling. Lane dismissed the idea of converting the case into a liquidation, as Giuliani had requested, stating that such a move would not serve the best interests of the individuals and entities to whom Giuliani owes money.
Giuliani’s lawyer, Gary Fischoff, mentioned that dismissing the case would permit Giuliani to appeal the defamation case stemming from his efforts to challenge Donald Trump’s defeat in the 2020 election. On the other hand, a lawyer representing the former election workers, Ruby Freeman and her daughter, accused Giuliani of using the bankruptcy proceedings as a tactic in bad faith and seeing the court as a temporary relief from his problems.
Giuliani filed for Chapter 11 bankruptcy in December after the ex-election workers won their defamation lawsuit. They claimed that Giuliani’s actions, influenced by Trump’s false allegations of election fraud, led to death threats that endangered their lives.
If the bankruptcy is dismissed, Freeman and Moss could return to a court in Washington, D.C. to enforce the $148 million judgment without incurring additional legal fees for the bankruptcy case. Additionally, Lane mentioned that a dismissal would come with a 12-month prohibition on Giuliani filing for bankruptcy protection again.
Aside from the bankruptcy case, Giuliani is entangled in various legal issues. Recently, he was stripped of his attorney license in New York for repeatedly making misleading statements about Trump’s election loss in 2020. Washington is also considering revoking his law license after a board recommended disbarment. Moreover, Giuliani is facing criminal charges in Georgia and Arizona related to his involvement in attempts to overturn the 2020 election results.
Giuliani’s bankruptcy filing listed debts of nearly $153 million, including tax liabilities, legal fees, and potential lawsuit judgments, while estimating assets of $1 million to $10 million. Financial documents in the bankruptcy case indicate that Giuliani had approximately $94,000 in cash in May, with his company holding about $237,000. His main source of income has been a retirement account valued at slightly over $1 million in May. Giuliani’s expenditures in May included approximately $28,000 for housing costs and other expenses related to his residences in Florida and New York City.
