On Friday, U.S. Bankruptcy Judge Sean Lane dismissed Rudy Giuliani’s bankruptcy case, criticizing the former New York City mayor for his noncompliance and attempts to avoid a $148 million defamation judgment and other debts. Lane labeled Giuliani a “recalcitrant debtor” who disregarded court orders and failed to provide transparency.

Judge’s Criticisms

Judge Lane highlighted several issues, including Giuliani’s failure to disclose income sources, refusal to hire an accountant, and uncooperative behavior. He noted that Giuliani funneled income from his now-canceled radio show into his own companies without reporting it, and was late to disclose his contract for a book deal. The judge emphasized the lack of transparency in Giuliani’s financial dealings as a significant red flag.

Implications of Dismissal

The dismissal of the bankruptcy case prevents Giuliani from seeking bankruptcy protection for 12 months. Creditors can now pursue other legal actions to reclaim their money, including potentially seizing his assets. Giuliani remains free to appeal the defamation verdict, which stems from his attempts to overturn Donald Trump’s 2020 election loss.

Reactions and Statements

Ted Goodman, Giuliani’s spokesperson, attributed the bankruptcy issues to politically motivated actions aimed at punishing Giuliani for investigating Hunter Biden. Goodman expressed confidence that the justice system would eventually vindicate Giuliani.

Rachel Strickland, a lawyer for former Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss, welcomed the dismissal, accusing Giuliani of using bankruptcy as a delay tactic. She stated that they would begin enforcing their judgment against him immediately.

Other Legal Challenges

Giuliani’s legal troubles extend beyond bankruptcy. Last week, he was disbarred in New York for making false statements about the 2020 election. He faces potential disbarment in Washington, D.C., and criminal charges in Georgia and Arizona related to his efforts to overturn the election results. Giuliani has pleaded not guilty in these cases.

Financial Disclosures

In his bankruptcy filings, Giuliani listed nearly $153 million in potential debts, including $1 million in tax liabilities. He reported having $94,000 in cash and $237,000 in his company’s bank account as of May. His primary income source in recent years has been a retirement account, which decreased from $2.5 million in 2022 to just over $1 million.

Conclusion

The dismissal of Giuliani’s bankruptcy case marks a significant setback for the former mayor as he continues to face numerous legal challenges and financial pressures. The ruling underscores the importance of transparency and compliance in bankruptcy proceedings.