Former Donald Trump lawyer Rudy Giuliani may soon see his assets liquidated following a decision from a federal bankruptcy judge in New York.
Judge Sean Lane dismissed Giuliani's bankruptcy petition on Friday, paving the way for creditors to collect debts by pursing asset seizures and foreclosures, which could potentially include his homes.
The Context
Giuliani, the former mayor of New York City, declared bankruptcy in December after being ordered to pay $148 million to two Georgia election workers who won a defamation lawsuit against him.
Election workers Ruby Freeman and Shaye Moss, who are mother and daughter, sued after Giuliani falsely accused them of adding ballots for President Joe Biden during the 2020 election in Georgia. Trump and allies including Giuliani continue to claim without evidence that the 2020 White House was "stolen."
In addition to the $148 million, Giuliani owes over $400,000 in legal fees and is also facing several pending lawsuits, including a $10 million sexual harassment suit from former employee Noelle Dunphy and a $1.3 billion defamation suit from Dominion Voting Systems.
Giuliani's homes, in New York City and Florida, are estimated to be worth up to $11 million combined. His lawyers have argued that his estate is worth about $8 million.
On Wednesday, Giuliani's lawyers asked for the bankruptcy petition to be dismissed, arguing that the former mayor's remaining funds could "easily" be consumed by legal fees if he remains bankrupt.
Giuliani was disbarred from practicing law in New York earlier this month.
What We Know
In a 22-page decision, Lane wrote that Giuliani had consistently displayed a lack of "transparency" while describing the state of his finances.
"Mr. Giuliani has failed to provide an accurate and complete picture of his financial affairs in the six months that this case has been pending," Lane wrote. "Transparency into Mr. Giuliani's finances has proven to be an elusive goal... the court sees no evidence that this will change going forward."
"Forcing creditors to wait years while they are prevented from pursuing their rights for, at best, a modest distribution seems inequitable and unwise," he continued. "Considering the totality of circumstances and weighing all the facts, therefore, the interests of creditors and the estate are better served by dismissal."
As part of the dismissal, Giuliani agreed not to file any further petitions for bankruptcy for a period of at least one year, allowing creditors enough time to begin collecting their debts.
Views
"Mayor Rudy Giuliani was denied the ability to appeal the grossly unfair $148 million judgement in Washington, D.C., during this proceeding," Giuliani spokesperson Ted Goodman wrote in a statement emailed to Newsweek. "This whole bankruptcy case was burdened with many of the same voluminous and overly broad discover requests and other actions—including regular leaks of information—intended to harm the mayor and destroy his businesses."
"It is yet another example of the effort to punish Mayor Rudy Giuliani as the person most responsible for exposing Hunter Biden's laptop and to deter anyone else from asking questions or getting to the truth," the statement continues. "We will continue to pursue justice and we are confident that—in the long run—our system of justice with be restored and the mayor will be totally vindicated."
Giuliani listed his New York City apartment for sale last year but the property currently remains unsold, with the value for luxury units in Manhattan rising in recent months.
During bankruptcy proceedings earlier this year, the creditors committee suggested that Giuliani help pay his debts by selling a $3.5 million condo in Florida, prompting Giuliani's legal team to suggest that creditors want the former Trump lawyer to become "homeless."
Lawyers for creditors accused Giuliani's legal team of resorting to "histrionics," pointing out that "there is a vast gulf of housing options available between residing in an approximately $3.5 million Palm Beach condominium and homelessness."
What's Next
At least some of Giuliani's assets will likely be liquidated following the ruling on Friday, with creditors now being free to pursue court orders that would force the issue. However, how much debt will be collected and which assets might be seized remains unclear.
Update 7/12, 5:00 p.m. ET: This article has been updated to include a statement from Giuliani spokesperson Ted Goodman.
About the writer
Aila Slisco is a Newsweek night reporter based in New York. Her focus is on reporting national politics, where she ... Read more
