Rudy Giuliani, the former New York mayor and advisor to Donald Trump, is facing opposition from creditors in his bankruptcy case. Among the creditors are two Georgia election workers, Ruby Freeman and her daughter Wandrea “Shaye” Moss, who were previously awarded a $148 million defamation judgment against Giuliani for spreading false claims about the 2020 election that led to severe harassment and threats against them, as reported by WABE.
During a Zoom status hearing with U.S. Bankruptcy Judge Sean Lane, creditor lawyers voiced their intent to possibly request the dismissal of Giuliani's bankruptcy case due to what they view as his disregard for bankruptcy laws and court orders which Philip Dublin, a lawyer representing Giuliani's creditors mentioned, "We do not have a good-faith debtor. He has misbehaved every step of the way," adding further indictment to Giuliani's conduct. Rachel Strickland, representing Freeman and Moss, criticized Giuliani for employing "underhanded litigation tactics," reiterating the bad faith shown in his handling of the bankruptcy process, according to WABE.
Giuliani, who filed for Chapter 11 reorganization shortly after the judgment against him, sought to convert this to a Chapter 7 liquidation, which would involve a trustee selling off his assets to pay creditors. His bankruptcy lawyer, Gary Fischoff, defended Giuliani’s right to convert the case but did not address the allegations directly in court and was unreachable for comment after the hearing. If the bankruptcy case is dismissed, creditors like Freeman and Moss could resume their collection efforts on the judgment without the additional legal entanglements of bankruptcy proceedings.
Compounding his legal troubles, Giuliani was disbarred in New York a day prior following findings of his repeatedly false statements about the 2020 election. He is also facing possible disbarment in Washington, D.C., and has criminal charges in both Georgia and Arizona concerning efforts to overturn the election results, to which he has pleaded not guilty. According to Giuliani's most recent financial filings, his cash on hand was roughly $94,000 at the end of May, and his company held approximately $237,000, demonstrating a decline from previous years' assets due to a series of legal, tax, and residential expenses. This suggests a financial downturn amid an array of legal challenges.
Ahead of the next key hearing set for July 10, 2024, Freeman and Moss are pushing for a ruling that would prevent the defamation judgment from being dismissed during Giuliani's bankruptcy, reinforcing their position to secure what is due from the harm inflicted upon them.
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