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Jimmy Williams
Former New York Mayor Rudy Giuliani, once a prominent figure and legal representative for Donald Trump, has filed for bankruptcy protection in New York.
This move comes after a jury in Washington, D.C., awarded an initial $148 million verdict against Giuliani for defaming two former Georgia election workers, Ruby Freeman and Wandrea “Shaye” Moss, in connection with false claims of election fraud during the 2020 presidential election.
The bankruptcy filing occurred a day after a court order mandated Giuliani to immediately pay $146 million to the former election workers. Giuliani’s spokesperson, Ted Goodman, issued a statement asserting that the bankruptcy filing was expected and emphasized that Chapter 11 provides an opportunity for Giuliani to pursue an appeal while ensuring transparency in his finances under the supervision of the bankruptcy court.
The filing lists Giuliani’s assets between $1 million and $10 million, with current total debt at $151 million, including nearly $1 million in back taxes. It notes that Giuliani faces several other lawsuits, placing his total estimated liabilities between $100 million and $500 million.
Giuliani’s decision to file a voluntary Chapter 11 petition triggers the “automatic stay” feature of federal bankruptcy law, offering protection from creditors, with exceptions. While ongoing litigation is paused, damages from defamation, such as the one awarded to Freeman and Moss, cannot be eliminated through bankruptcy.
The bankruptcy case has been assigned to Judge Sean H. Lane, a former assistant U.S. attorney for the Southern District of New York, a position Giuliani also held.
Michael Gottlieb, an attorney for Freeman and Moss, commented on the bankruptcy filing, stating that it is unsurprising and won’t succeed in discharging Giuliani’s debt to the former election workers.
The defamation case involved false accusations by Giuliani against Freeman and Moss regarding election fraud in Georgia. The jury initially awarded over $148 million in damages, which was reduced to about $146 million to account for damages paid to the pair in a settlement with the TV network OAN, the other defendant in the case.
Giuliani’s financial move indicates an attempt to navigate the aftermath of the significant defamation verdict while signaling the beginning of a legal process that may unfold in the bankruptcy court.
