Former New York City Mayor Rudy Giuliani, known for his role as former President Donald Trump’s personal attorney, faced a significant legal setback last year when he declared bankruptcy in an attempt to shield his assets from a defamation lawsuit judgment.
The bankruptcy claim was recently dismissed by a judge after an agreement was reached regarding administrative expenses.
This dismissal paves the way for two Georgia election workers to pursue their efforts to collect the $148 million judgment they were awarded against Giuliani over his unproven claims of ballot fraud following the 2020 election.
The trial concluded with a jury ruling in favor of Georgia election workers Ruby Freeman and Shaye Moss, leading to the substantial judgment against Giuliani.
However, this judgment was promptly frozen when Giuliani filed for Chapter 11 bankruptcy protection.
The judge overseeing Giuliani’s bankruptcy case had expressed frustration with the lack of transparency regarding his financial situation.
An ongoing dispute between Giuliani and creditors over arrangements to cover around $400,000 in administrative costs had been a major obstacle to resolving the case.
This dispute was finally settled with new terms agreed upon for covering these costs.
With this dispute resolved, Judge Sean Lane finalized his decision to dismiss Giuliani’s bankruptcy claim, allowing creditors including Freeman and Moss to begin their collection efforts.
The order instructed Giuliani to place $100,000 in an escrow account and mandated the sale of two properties he owned within six months if the expenses and fees incurred by Global Data Risk, LLC were not covered.
It is unlikely that Freeman and Moss will be able to collect the full amount awarded by the jury due to Giuliani’s disclosed assets totaling only around $10.6 million, which include two properties in New York City and Florida.
Additionally, other creditors such as Dominion Voting Systems and a former employee who sued Giuliani are also waiting for an opportunity to pursue actions against any remaining assets he may possess.
While GDR is expected to recover its debt through these proceedings, it remains uncertain how much of the judgment amount Freeman and Moss will ultimately receive.
Furthermore, there are other creditors waiting in line for their chance at collecting from Giuliani’s assets.
Giuliani has been given until September 13 to file any objections to the judge’s order, with additional dates set for further hearings if necessary.
This process reflects a complex legal battle that has significant implications not only for Giuliani but also for those seeking compensation from him.
