In the Courts

Rudy Giuliani’s Bankruptcy Case Thrown Out By Federal Judge

Former Republican Mayor Rudy Giuliani of New York City’s bankruptcy case was thrown out by a federal judge Friday, opening the door for efforts to collect a $150 million judgement.

Giuliani initially filed for bankruptcy in December, following a default judgment in favor of Georgia poll workers Ruby Freeman and Wandrea’ ArShaye Moss. United States Bankruptcy Judge Sean Lane of the Southern District of New York agreed to the motion by attorneys for Freeman and Moss to dismiss Giuliani’s case in a 22-page ruling, saying that the former attorney for former President Donald Trump was not transparent about his finances.

“Mr. Giuliani has failed to fulfill his obligations to file accurate, complete monthly operating reports,” Lane wrote. “A debtor in possession is obligated to file monthly operating reports that include information about the case and certain financial transactions and ‘keep a record of receipts and the disposition of money and property received’.”

“As part of a debtor’s continuing obligations during a case, monthly operating reports are required to be filed by ‘the 21st day of the month immediately following the reporting period covered by the [monthly operating report],’” Lane continued. “Every single monthly operating report filed by Mr. Giuliani has been untimely.”

Giuliani will be barred from re-filing for bankruptcy for one year, according to the ruling.

“The year-long bar will provide time for creditors to pursue any rights, including executing on existing judgments or pursuing unresolved litigation,” Lane wrote.

United States District Judge Beryl Howell of the District of Columbia found Giuliani liable for defaming Moss and Freeman in a default judgment in August, claiming that the former New York City mayor did not comply with discovery requirements.

Giuliani has been indicted in Georgia and Arizona over his involvement in former President Donald Trump’s efforts to contest the results of the 2020 election in those states.

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Harold Hutchison

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Harold Hutchison

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