A federal bankruptcy court judge said on Wednesday he is leaning toward dismissing Rudy Giuliani’s bankruptcy case after two former Georgia election workers Giuliani defamed agreed it would be the best way for them to collect at least part of a $148 million judgment against the former New York City mayor.
Dismissal would remove the shield surrounding Giuliani’s assets and allow the election workers — Ruby Freeman and Shaye Moss — and other creditors to pursue his money in the courts.
It would also allow Giuliani to appeal the defamation judgment.
Giuliani filed for bankruptcy in December 2023 after a jury ordered him to pay nearly $150 million to Freeman and Moss for defaming them with false accusations that the mother and daughter committed election fraud while the two were counting ballots in Georgia’s Fulton County on Election Day in 2020.
Rudy Giuliani, the former personal lawyer for former President Donald Trump, speaks with reporters after a verdict was reached in his defamation jury trial in Washington, DC, Dec. 15, 2023.
Anna Moneymaker/Getty Images
The bankruptcy judge signaled he would rule Friday during another hearing.
Court records showed that Giuliani has less than $100,000 cash and a dwindling retirement account. Earlier this month he was disbarred in New York over his “false and misleading” statements about the 2020 election.
He also faces criminal charges in Georgia and Arizona over his efforts to overturn the results of the 2020 election. He has pleaded not guilty to all charges.
Former New York City Mayor Rudy Giuliani’s bankruptcy case has been making headlines recently, as the likelihood of its dismissal paves the way for the collection of damages against him. Giuliani, who served as President Donald Trump’s personal attorney, filed for bankruptcy in December 2021 after facing mounting legal fees and lawsuits.
The bankruptcy case, which was filed under Chapter 11 of the U.S. Bankruptcy Code, allowed Giuliani to reorganize his debts and assets while protecting him from creditors. However, the case has faced numerous challenges, including objections from creditors and the U.S. Trustee’s Office.
Recently, a federal judge indicated that he is likely to dismiss Giuliani’s bankruptcy case, citing concerns about the lack of transparency and cooperation from Giuliani and his legal team. This decision could have significant implications for Giuliani, as it would open the door for creditors to pursue collection of damages against him.
One of the main creditors in Giuliani’s bankruptcy case is Dominion Voting Systems, a company that has filed a $1.3 billion defamation lawsuit against Giuliani for spreading false claims about the integrity of the 2020 presidential election. If Giuliani’s bankruptcy case is dismissed, Dominion and other creditors could move forward with their lawsuits and seek damages from Giuliani personally.
In addition to Dominion, Giuliani also faces legal challenges from other parties, including the city of Detroit and a group of Capitol Police officers who are suing him for his role in promoting false claims about the 2020 election and the January 6th insurrection.
Giuliani’s legal troubles have only added to his financial woes, as he reportedly owes millions of dollars in legal fees and other debts. If his bankruptcy case is dismissed, Giuliani could be forced to liquidate assets and pay damages to his creditors, potentially leading to further financial hardship for the former mayor.
Overall, the likelihood of Giuliani’s bankruptcy case dismissal is a significant development that could have far-reaching consequences for him. As creditors line up to collect damages, Giuliani may find himself facing even more legal challenges and financial difficulties in the months to come.
