Federal Judge Throws Out Rudy Giuliani’s Bankruptcy Case, Allowing Creditors to Pursue Assets
Federal Judge Throws Out Rudy Giuliani’s Bankruptcy Case, Allowing Creditors to Pursue Assets
A federal judge in New York made a significant decision on Friday by throwing out Rudy Giuliani’s bankruptcy case. This ruling opens the door for numerous creditors, including two former Georgia election workers who won a $148 million defamation claim against him, to go after his assets.
Giuliani sought bankruptcy protection almost seven months ago after being ordered to pay millions in damages to Ruby Freeman and Shaye Moss, whom he falsely accused of helping to steal the 2020 presidential election. However, U.S. Bankruptcy Judge Sean Lane cited Giuliani’s failure to meet reporting obligations and provide financial transparency as reasons for dismissing the case.
The judge’s decision restricts Giuliani from seeking bankruptcy protection for one year. This ruling allows Freeman, Moss, and other creditors to pursue legal remedies to collect the money owed to them by Giuliani. It also enables other pending lawsuits against him, including defamation suits by Dominion Voting Systems and Smartmatic, to resume.
Giuliani’s creditors have accused him of using the bankruptcy proceedings to hide details about his assets and avoid paying debts. Despite efforts to appoint a trustee to oversee his finances, the judge rejected this proposal, citing Giuliani’s uncooperative conduct.
Giuliani’s attorneys have argued that dismissing the case will allow him to appeal the defamation judgment. However, the former mayor would need to put up a $148 million bond to pursue the appeal. Giuliani’s financial situation has come under scrutiny, with debts totaling $153 million and assets valued at $11 million.
This latest development adds to the legal challenges Giuliani faces following his involvement in false claims about the 2020 election. He is also facing criminal charges in Georgia and Arizona. Giuliani’s disbarment in New York and potential disbarment in Washington further complicate his legal troubles.
As the case against Giuliani unfolds, creditors and legal authorities are closely monitoring his financial situation and legal maneuvers. The fallout from this ruling could have far-reaching implications for Giuliani’s future and the ongoing legal battles he faces.
