Former New York Mayor Rudy Giuliani departs the U.S. District Courthouse after he was ordered to pay $148 million in his defamation case in Washington, D.C., Dec. 15, 2023. File picture by Bonnie Cash/Reuters
NEW YORK (AP) — A federal judge threw out the bankruptcy case of former New York Mayor Rudy Giuliani on Friday. He cited repeated “uncooperative conduct,” together with a failure to adjust to court docket orders and disclose sources of revenue.
While Giuliani’s collectors can now pursue different authorized treatments, akin to seizing his residences and different belongings, the judge’s determination additionally permits the previous prosecutor and longtime ally of former President Donald Trump to now attempt to attraction an enormous $148 million defamation verdict.
Here are some particulars of the bankruptcy case:
What was the judge’s reasoning for dismissing the case?
U.S. Bankruptcy Judge Sean Lane had sharp criticism for Giuliani, calling him a “recalcitrant debtor” who thumbed his nostril on the bankruptcy course of to protect himself from the defamation judgment and different money owed.
READ MORE: Giuliani disbarred in New York as court docket finds he repeatedly lied about Trump’s 2020 election loss
“Transparency into Mr. Giuliani’s finances has proven to be an elusive goal,” Lane wrote in his determination, including how he “sees no evidence that this will change.”
Lane expressed concern Giuliani funneled his revenue into firms he owned and by no means reported any revenue from these entities. He additionally did not disclose he’s pitching his personal “Rudy’s Coffee” model and did not instantly disclose a e-book contract.
Did Guiliani need this to occur?
Not at first. Giuliani filed for bankruptcy final December, days after a jury awarded the eye-popping judgement to 2 former Georgia election staff who mentioned he unfold lies about them in 2020 and upended their lives with racist threats and harassment. The bankruptcy submitting had frozen assortment of that debt.
Giuliani’s legal professionals this month sought to have a trustee dump his belongings, however they modified their minds and on Wednesday pushed for the case to be dismissed. Giuliani’s spokesperson mentioned he expects the previous U.S. legal professional will in the end be “totally vindicated” in court docket.
What occurs subsequent?
Now that the case has been tossed out, Giuliani is now not shielded from collectors, together with judgments, assortment actions, foreclosures and repossessions, due to an computerized keep granted below federal bankruptcy regulation. That means his collectors can attempt to recoup at the least among the cash he owes by varied means, akin to getting a court docket order to grab his belongings.
It additionally means the 2 election staff can return to the court docket and search enforcement of their judgment. Their lead bankruptcy legal professional mentioned in a press release on Friday they plan to “move forward as quickly as possible.” Giuliani is now free to attraction the defamation verdict.
What is the present state of Giuliani’s funds?
When Giuliani filed for bankruptcy, he listed practically $153 million in current or potential money owed. That included practically $1 million in state and federal tax liabilities, cash he owes legal professionals and tens of millions extra in potential judgements in lawsuits in opposition to him. He estimated on the time he had belongings value $1 million to $10 million.
In his most up-to-date monetary submitting within the bankruptcy case, he mentioned he had about $94,000 in money on the finish of May and his firm, Guiliani Communications, had about $237,000 within the financial institution. He has been drawing down on a retirement account, value practically $2.5 million in 2022. It had simply over $1 million in May.
Left:
Former New York Mayor Rudy Giuliani departs the U.S. District Courthouse after he was ordered to pay $148 million in his defamation case in Washington, D.C., Dec. 15, 2023. File picture by Bonnie Cash/Reuters
