Without the protection of Chapter 11, the former mayor and Trump lawyer could have his assets seized and sold by creditors.
- Share full article
Filing for bankruptcy under the Chapter 11 code protected Rudolph W. Giuliani from having his creditors come after his assets and pursuing lawsuits against him.
Rudolph W. Giuliani is free from the demands — and protections — of bankruptcy court. A federal judge dismissed his case on Friday, citing the former New York mayor’s failure to comply with almost any of the court’s requirements.
Mr. Giuliani, the onetime personal lawyer to former President Donald J. Trump, filed for bankruptcy protection in December after a federal jury in Washington decided he should pay $148 million to two Georgia election workers he defamed after the 2020 election. In total, he owes about $153 million to 20 people and businesses.
Filing for bankruptcy under the Chapter 11 code protected Mr. Giuliani from having his creditors coming after his assets and pursuing lawsuits. But bankruptcy also required that he disclose his assets and details about his businesses.
“The record in this case reflects Mr. Giuliani’s continued failure to meet his reporting obligations and provide the financial transparency required of a debtor in possession,” Sean H. Lane, the bankruptcy judge in the Southern District of New York who oversaw the case, said in his dismissal order.
Here is a look at what comes next, now that Mr. Guiliani’s creditors are free to go after his estate.
Mr. Giuliani owes money to at least 20 people and entities.
Ruby Freeman and Shaye Moss became the focus of a torrent of attacks and threats after the 2020 election because Mr. Giuliani spread lies about them cheating when they counted votes in Fulton County, Ga. They are the two creditors who come first in making Mr. Giuliani pay. Not only are they owed far more than anyone else, but they also have a court judgment stating that Mr. Giuliani must pay them.
We are having trouble retrieving the article content.
Please enable JavaScript in your browser settings.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.
SKIP ADVERTISEMENT
Source: nytimes.com