Light Wave

U.S. News

Creditors Accuse Rudy Giuliani of Treating Bankruptcy ‘as a Joke’

By Jake Beardslee · July 10, 2024

Former New York City Mayor Rudy Giuliani's bankruptcy case is approaching a pivotal moment, with a hearing scheduled for Wednesday that could significantly alter the course of his financial affairs. U.S. Bankruptcy Judge Sean Lane will consider three competing proposals from Giuliani and his creditors, each of which would mark a dramatic shift from the current situation.

Giuliani filed for Chapter 11 bankruptcy in December following a $148 million defamation judgment against him by two Georgia election workers. The judgment stemmed from Giuliani's promotion of baseless conspiracy theories about the 2020 election. His creditors have accused him of using the bankruptcy process as a delaying tactic to maintain control over his finances while avoiding payment.  Gage Skidmore from Surprise, AZ, United States of America / Wikimedia

In a scathing assessment, a committee of creditors wrote in court documents, "Since day one, Giuliani has regarded this case and the bankruptcy process as a joke, hiding behind the façade of an elderly, doddering man."  Gage Skidmore from Surprise, AZ, United States of America / Wikimedia

The case has now reached a crossroads, with a split emerging among Giuliani's creditors. The two Georgia election workers, Ruby Freeman and Shaye Moss, have shifted their stance, now seeking to dismiss Giuliani's bankruptcy entirely.  Pool via USA TODAY NETWORK

Their attorney, Rachel Strickland, argued in court filings, "Rudolph Giuliani's bad faith now warrants dismissal of this case. For over six months, the Freeman Plaintiffs have waited patiently as Mr. Giuliani has abused the chapter 11 process by pursuing a self-serving, delay-oriented strategy."  Gage Skidmore from Surprise, AZ, United States of America / Wikimedia

Giuliani himself has proposed converting his bankruptcy to Chapter 7, effectively relinquishing control of his finances. His spokesperson, Ted Goodman, stated, "I can promise you this. No matter what they do, they can't take away Mayor Giuliani's most important assets — integrity, courage and love for America."  Gage Skidmore from Surprise, AZ, United States of America

However, creditors view this proposal with skepticism. Philip Dublin, a lawyer representing the creditors' committee, asserted, "We do not have a good-faith debtor. He has misbehaved every step of the way," The Hill reported.  Gage Skidmore from Surprise, AZ, United States of America / Wikimedia

The creditors' committee also invoked Giuliani's recent disbarment in New York, stating, "The New York Supreme Court's decision on Giuliani's disbarment just as easily could have been written about Giuliani and this bankruptcy case. This chicanery is what he does and who he is."  wallyg / Wikimedia

As the hearing approaches, Judge Lane faces the task of choosing between Giuliani's request to convert to Chapter 7, the committee's proposal for a Chapter 11 trustee, or the election workers' motion to dismiss the bankruptcy entirely. The decision will have significant implications for Giuliani's financial future and the ability of his creditors to collect on their claims.  Gage Skidmore from Surprise, AZ, United States of America / Wikimedia