A federal judge dismissed Rudy Giuliani’s bankruptcy protection case on Friday, removing the legal shield that had protected the former New York City mayor and Trump adviser from creditors. The decision opens the door for foreclosures, repossessions, and other efforts to collect on his debts.
Giuliani had requested the dismissal on Wednesday after failing to meet court deadlines for over six months. During this period, his creditors accused him of evading questions about his finances. He initially filed for bankruptcy protection following a federal jury’s December ruling, which found him liable for defaming Georgia election workers Ruby Freeman and Shaye Moss, awarding them $148 million in damages.
Giuliani’s defamation stemmed from his baseless claims that former President Donald Trump lost the 2020 election due to widespread fraud, implicating Freeman and Moss in the conspiracy. With the bankruptcy case dismissed, Giuliani can now appeal the defamation ruling, a move previously barred by U.S. Bankruptcy Judge Sean Lane during the Chapter 11 reorganization.
Judge Lane criticized Giuliani’s lack of transparency throughout the bankruptcy proceedings, highlighting his failure to retain an accountant as a significant oversight. “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 in his ruling.
Former NYC Mayor Faces Foreclosures and Repossessions After Legal and Financial Troubles
Giuliani is prohibited from filing for bankruptcy protection again for one year. His spokesperson, Ted Goodman, criticized the “voluminous and overly broad discovery requests” in the case and expressed confidence in Giuliani’s eventual vindication.
Throughout the bankruptcy case, Giuliani faced accusations from creditors of hiding assets and using the process to delay collections. His recent actions, including a request for an extension to file a reorganization plan followed by a motion to liquidate assets and then a request to dismiss the case, were described by creditors as “completely incongruous.”
Giuliani’s financial and legal troubles have escalated, with not guilty pleas entered in Georgia and Arizona for charges related to his alleged efforts to undermine the 2020 presidential election results. The former U.S. Attorney for the Southern District of New York was disbarred from practicing law in New York on July 2, and a Washington, D.C. board recommended his disbarment there in May.
