Major Setback For Giuliani: Bankruptcy Case Dismissed

On Friday, a federal judge in New York dismissed Rudy Giuliani’s bankruptcy case.

The proceedings ended without discharging any of Giuliani’s debt. He remains responsible for repaying all debts, and creditors, including two Georgia election workers who won a $148 million defamation claim, can resume collection efforts, including potentially seizing his assets.

Bankruptcy Judge Sean H. Lane criticized Giuliani for his “lack of financial transparency,” which he found “particularly troubling.”

As The Washington Post reports:

Lane’s written ruling came amid claims by Giuliani’s creditors that the former New York mayor and personal lawyer to former president Donald Trump had used the proceedings to hide details about his assets and avoid paying the former election workers.

Friday’s order would allow Freeman and Moss and other creditors to pursue legal remedies to collect money owed to them by Giuliani. It also allows other pending lawsuits against the former mayor that had been frozen by the bankruptcy proceeding to resume, including defamation suits by the voting machine companies Dominion Voting Systems and Smartmatic and a sexual harassment and wage theft claim by former Giuliani associate Nicole Dunphy.

All are part of a committee of “unsecured creditors” that had sought relief in the bankruptcy case.

A committee of other Giuliani creditors had pressed for the bankruptcy case to continue and for a trustee to be appointed to oversee Giuliani’s finances. They argued it would be the only way to get a full and accurate picture of Giuliani’s cash and assets after months in which the former mayor filed inconsistent and incomplete financial statements and failed to turn over financial information about his businesses and other holdings.

Giuliani has claimed that Donald Trump still owes him approximately $2 million in unpaid legal fees related to his efforts to overturn the 2020 election results. In a court filing on February 27, Giuliani noted a possible claim against Trump personally for these unpaid legal fees​.

In legal filings, Giuliani has disclosed debts totaling $153 million.

This is a breaking news story. Please check back for updates.

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