Judge throws out Rudy Giuliani’s bankruptcy case, says he flouted process with lack of transparency
NEW YORK — A judge has denied the request Rudy Giuliani Friday’s bankruptcy case was heard in court, which found that the former New York City mayor had circumvented the process through a lack of transparency.
U.S. Bankruptcy Judge Sean Lane formalized the decision after saying Wednesday he was leaning toward it. Lawyers for Giuliani and his two largest creditors — two former election workers he allegedly defamed — agreed that dismissing the case was the best path forward.
The dismissal ends Giuliani’s bid for bankruptcy protection, but does not absolve him of his debts. His creditors can now pursue other legal avenues to recover at least some of the money they are owed, such as obtaining a court order to seize his apartments and other assets.
If the case is dismissed, the former mayor could also appeal the defamation lawsuit, which arose from his efforts to overturn Donald Trump’s loss in the 2020 election.
Lane said the evidence in the case showed that Giuliani had failed to meet the financial transparency obligations expected of a debtor and that dismissing the bankruptcy was in the best interests of the people to whom the former mayor owed money.
“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-enrichment and that he has potential conflicts of interest that could impede the handling of his bankruptcy case,” Lane wrote in a 22-page decision.
The judge said most debtors will attempt to resolve such problems if they are made aware of them, but “Mr. Giuliani, on the other hand, has done nothing.”
A request for comment was left with Giuliani’s attorney and spokesman.
Giuliani’s other creditors wanted to continue the bankruptcy proceedings and have a court-appointed trustee take control of Giuliani’s assets.
The dismissal means Giuliani will be barred from filing for bankruptcy for 12 months.
Giuliani filed for bankruptcy last December, days after two former Georgia election workers — Ruby Freeman and her daughter, Wandrea “Shaye” Moss — a $148 million defamation judgment against him.
They said Giuliani’s attack on them over Trump’s lies about the theft of the 2020 election led to death threats that left them fearing for their lives. The filing froze collection of the debt.