NEW YORK – A federal judge in New in York dismissed Rudy Giuliani’s bankruptcy filing on Friday, a move that exposes the former New York City mayor to potential asset seizures by creditors who have won significant legal claims against him. The decision allows proceedings against Giuliani to advance, including attempts by two Georgia election workers, Ruby Freeman and Shaye Moss, who previously won a $148 million defamation lawsuit against Giuliani for falsely accusing them of electoral fraud during the 2020 presidential election.
Judge Sean Lane of the U.S. Bankruptcy Court in the Southern District of New York cited Giuliani’s consistent neglect in meeting reporting obligations and maintaining financial transparency as grounds for the dismissal. The court has barred Giuliani from refiling for bankruptcy for a year.
In response to the dismissal, Ted Goodman, a spokesperson for Giuliani, described the decision as part of an ongoing effort to punish the former mayor. Goodman expressed confidence in Giuliani’s eventual exoneration through the judicial system.
Throughout the bankruptcy proceedings, Giuliani was criticized for his opaque handling of financial disclosures. Creditors, including Freeman and Moss, argued that Giuliani leveraged the bankruptcy process as a tactic to conceal assets and delay payments mandated by court judgments. Following the Court’s decision, these creditors can now resume efforts to collect the money owed to them.
The court’s decision also reactivates other legal challenges pending against Giuliani. These include defamation claims by voting machine companies Dominion Voting Systems and Smartmatic, and an employment-related lawsuit involving claims of sexual harassment and wage theft by a former Giuliani associate, Nicole Dunphy.
The unraveling bankruptcy case has shed light on Giuliani’s precarious financial situation. Documents reveal he faces at least $153 million in liabilities, including substantial unpaid legal fees and over a million dollars in state and federal taxes. Despite listing approximately $11 million in assets, including property in New York and Florida, Giuliani’s actual liquidity appears strained, with less than $100,000 reported in his bank accounts by the end of May.
Delays and inconsistent reporting characterized Giuliani’s financial disclosures throughout the case. The former mayor’s legal team struggled with administrative aspects, like securing an accountant, which they cited as reasons for the inconsistencies.
In a contentious turn of events earlier this year, Giuliani shifted his bankruptcy strategy multiple times — initially seeking Chapter 11 protection to reorganize debt, and then attempting to switch to Chapter 7 for liquidation handled by a trustee. These shifts were met with accusations from creditors of using procedural delays to stall the legal process.
Ultimately, the judge’s dismissal of the bankruptcy case reopens the path for creditors to enforce the collection of debts. It also means Giuliani will need to post a $148 million bond if he intends to appeal the defamation judgment, a challenging feat given his reported financial situation.
Struggling under mounting legal and financial pressures, Giuliani also faces criminal charges in multiple states relating to his efforts to contest the 2020 election results, which he has consistently claimed were fraudulent.
The legal and financial hardships that have befallen Giuliani mark a stark contrast to his earlier prominence as “America’s mayor” and a respected federal prosecutor, highlighting the dramatic reversal in his public and personal life since the 2020 election.