A judge dismissed Rudy Giuliani's bankruptcy case on Friday, citing the former New York City mayor's repeated lack of transparency and non-compliance with court orders. This decision marks a pivotal moment in Giuliani's ongoing legal battles, as creditors are now free to pursue his assets to recover a $148 million defamation judgment and other debts.
U.S. Bankruptcy Judge Sean Lane described Giuliani as a "recalcitrant debtor" who exhibited "uncooperative conduct," including self-dealing and failing to disclose his sources of income. "Such a failure is a clear red flag," Judge Lane stated in his decision. The dismissal of the case does not absolve Giuliani of his debts; instead, it allows creditors to seek legal remedies such as court orders to seize his properties and other assets.
The defamation case that triggered the bankruptcy filing stemmed from Giuliani's efforts to overturn the 2020 presidential election results, leading to a substantial damages award to former Georgia election workers Ruby Freeman and Wandrea "Shaye" Moss. Giuliani's bankruptcy filing, made last December, temporarily halted the collection of this debt.
During the bankruptcy proceedings, Judge Lane expressed frustration with Giuliani's lack of transparency. He noted Giuliani's failure to hire an accountant to review his finances, his funneling of income into companies he owned, and his late disclosure of a book contract. "Transparency into Mr. Giuliani's finances has proven to be an elusive goal," Lane wrote, emphasizing the improbability of any change in this behavior.
Giuliani's spokesperson, Ted Goodman, compared the bankruptcy case to the "grossly unfair" defamation lawsuit, alleging political motives behind Giuliani's legal troubles. "We are confident our system of justice will be restored, and the mayor will be totally vindicated," Goodman asserted, despite providing no evidence for these claims.
Freeman and Moss, who accused Giuliani of defaming them following the 2020 election, expressed relief at the dismissal. "Ruby Freeman and Shaye Moss have already waited too long for justice," their lawyer, Rachel Strickland, said. "We are pleased the court saw through Mr. Giuliani's games and put a stop to his abuse of the bankruptcy process. We will begin enforcing our judgment against him ASAP."
Giuliani's creditors had varied reactions to the dismissal. Some preferred the appointment of a court-appointed trustee to oversee his assets, while others, including Giuliani's lawyer Gary Fischoff, ultimately agreed that dismissing the case was the best course of action. Fischoff noted that administrative fees related to liquidation would "consume if not 100%, a substantial portion of the assets."
The dismissal also paves the way for Freeman and Moss to continue their efforts to collect the damages awarded to them. The women have previously stated that Giuliani's targeting of them led to death threats, causing them to fear for their lives.
Giuliani's legal woes extend beyond the bankruptcy and defamation cases. Recently, he was disbarred as an attorney in New York for making false statements about the 2020 election. He faces potential disbarment in Washington, D.C., and criminal charges in Georgia and Arizona related to his attempts to overturn the election results. Giuliani has pleaded not guilty to these charges.
When Giuliani filed for bankruptcy, he listed nearly $153 million in debts, including almost $1 million in state and federal tax liabilities. His assets were estimated to be worth between $1 million and $10 million. Recent financial filings revealed that he had about $94,000 in cash and $237,000 in his company's bank account at the end of May.
