In a stunning turn of events, former New York Mayor Rudy Giuliani has filed for bankruptcy in the wake of a hefty $148 million judgment against him in a defamation case. The legal blow comes just days after Giuliani was ordered to pay the substantial sum to two former Georgia election workers whom he falsely accused of fraud in the aftermath of Donald Trump’s 2020 presidential election loss.
Once hailed as “America’s mayor” for his leadership in the aftermath of the September 11, 2001, attacks, Giuliani now finds himself drowning in debts, largely stemming from his legal work on behalf of former President Trump. Concurrently, Giuliani faces criminal charges in Georgia, adding to his legal woes.
Giuliani’s bankruptcy filing, submitted to the U.S. Bankruptcy Court in New York, reveals between $100 million and $500 million in liabilities and assets ranging from $1 million to $10 million. The move is seen as an attempt to buy time for Giuliani to appeal the $148 million penalty and ensure equitable treatment of other creditors.
A spokesperson for Giuliani, who is no longer associated with Trump’s legal team, emphasized the perceived unreasonableness of the punitive amount. The bankruptcy proceedings, typical for individuals and companies seeking to reorganize or eliminate debts, will temporarily halt all pending civil lawsuits against Giuliani. However, it may not absolve him of the defamation penalty, as judges have ruled that such penalties cannot be discharged in cases of “willful and malicious” conduct.
The defamation case revolves around Giuliani’s false claims against former election workers Wandrea “Shaye” Moss and her mother Ruby Freeman, who faced threats after being wrongly accused of voting fraud. Giuliani, despite admitting the defamatory nature of his claims in court, continues to repeat them, prompting the election workers to file a second lawsuit.
A federal judge recently ruled that Giuliani must begin immediate payments to the two women, citing concerns about potential asset concealment. Bankruptcy, it seems, will not exempt him from his debt to them.
Once celebrated as Time magazine’s Person of the Year in 2001, Giuliani’s reputation has taken a considerable hit. His erratic efforts to challenge the 2020 election results and baseless claims of election fraud have drawn widespread criticism and mockery. From scheduling press conferences at a landscaping company to a disconcerting incident involving dripping hair dye, Giuliani’s actions have been subject to ridicule.
Facing criminal charges of election subversion in Georgia, Giuliani maintains his plea of not guilty. His law license has been suspended in New York, and he faces potential disbarment in Washington.
The bankruptcy filing lists notable creditors, including Hunter Biden and Noelle Dunphy. Hunter Biden has sued Giuliani for privacy violations related to alleged data from his laptop, while Dunphy has filed suits for sexual assault, harassment, and wage theft—allegations Giuliani vehemently denies.
Despite the bankruptcy filing, Dunphy’s lawyer remains steadfast, indicating that legal proceedings will continue. Other creditors include Smartmatic and an employee of Dominion Voting Systems, both of whom Giuliani targeted in lawsuits claiming vote manipulation in the 2020 election.
As Giuliani grapples with the financial fallout, the future remains uncertain for the former mayor and once-revered figure.
