Current:Home > reviewsRudy Giuliani’s bankruptcy case was thrown out. Here are some key things to know -Blueprint Money Mastery
Rudy Giuliani’s bankruptcy case was thrown out. Here are some key things to know
View
Date:2025-04-11 14:25:26
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,” including a failure to comply with court orders and disclose sources of income.
While Giuliani’s creditors can now pursue other legal remedies, such as seizing his apartments and other assets, the judge’s decision also allows the former prosecutor and longtime ally of former President Donald Trump to now try to appeal a massive $148 million defamation verdict.
Here are some details 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 nose at the bankruptcy process to shield himself from the defamation judgment and other debts.
“Transparency into Mr. Giuliani’s finances has proven to be an elusive goal,” Lane wrote in his decision, adding how he “sees no evidence that this will change.”
Lane expressed concern Giuliani funneled his income into companies he owned and never reported any income from those entities. He also failed to disclose he is pitching his own “Rudy’s Coffee” brand and didn’t immediately disclose a book contract.
Did Guiliani want this to happen?
Not at first. Giuliani filed for bankruptcy last December, days after a jury awarded the eye-popping judgement to two former Georgia election workers who said he spread lies about them in 2020 and upended their lives with racist threats and harassment. The bankruptcy filing had frozen collection of that debt.
Giuliani’s lawyers this month sought to have a trustee sell off his assets, but they changed their minds and on Wednesday pushed for the case to be dismissed. Giuliani’s spokesperson said he expects the former U.S. attorney will ultimately be “totally vindicated” in court.
What happens next?
Now that the case has been tossed out, Giuliani is no longer protected from creditors, including judgments, collection actions, foreclosures and repossessions, because of an automatic stay granted under federal bankruptcy law. That means his creditors can try to recoup at least some of the money he owes by various means, such as getting a court order to seize his assets.
It also means the two election workers can return to the court and seek enforcement of their judgment. Their lead bankruptcy attorney said in a statement on Friday they plan to “move forward as quickly as possible.” Giuliani is now free to appeal the defamation verdict.
What is the current state of Giuliani’s finances?
When Giuliani filed for bankruptcy, he listed nearly $153 million in existing or potential debts. That included nearly $1 million in state and federal tax liabilities, money he owes lawyers and millions more in potential judgements in lawsuits against him. He estimated at the time he had assets worth $1 million to $10 million.
In his most recent financial filing in the bankruptcy case, he said he had about $94,000 in cash at the end of May and his company, Guiliani Communications, had about $237,000 in the bank. He has been drawing down on a retirement account, worth nearly $2.5 million in 2022. It had just over $1 million in May.
veryGood! (8)
Related
- Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
- Plans abounding for new sports stadiums across the US, carrying hefty public costs
- The Nordstrom Half Yearly Sale Has Jaw-Dropping 60% Discounts on SKIMS, Kate Spade, Spanx, More
- Inside Marcus Jordan and Larsa Pippen's Game-Changing Love Story
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Kourtney Kardashian Reveals First Photos of Baby Rocky With Travis Barker
- Why Coco Austin Calls Daughter Chanel Her Little Stalker
- Alabama mom is 1-in-a-million, delivering two babies, from two uteruses, in two days
- DoorDash steps up driver ID checks after traffic safety complaints
- Patrick Mahomes says Chiefs joked with Travis Kelce, but Taylor Swift is now 'part of the team'
Ranking
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Washington state police accountability law in the spotlight after officers cleared in Ellis’ death
- Where to watch 'It's a Wonderful Life': TV channels, showtimes, streaming info
- NBA MVP Joel Embiid won't play in 76ers game vs. Heat on Christmas due to sprained ankle
- Louvre will undergo expansion and restoration project, Macron says
- Colts' Michael Pittman Jr. out Sunday with brain injury after developing new symptoms
- Toyota recalls 2023: Check the full list of models recalled this year
- Israel and Hamas measures get a look as most US state legislatures meet for first time since Oct. 7
Recommendation
A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
Alex Batty, British teen found in France after missing for 6 years, breaks his silence: I've been lying
Palestinian death toll tops 20,000 in Israel-Hamas war, Gaza officials say
Where Jonathan Bennett Thinks His Mean Girls' Character Aaron Samuels Is Today
Where will Elmo go? HBO moves away from 'Sesame Street'
CBS News poll: What are Americans' hopes and resolutions for 2024?
Trump says he looks forward to debating Biden
Bah, Humbug! The Worst Christmas Movies of All-Time