Rudy Giuliani files for bankruptcy after jury orders him to pay $148 million in defamation case
In a Thursday bankruptcy petition, Rudy Giuliani says he doesn't have the assets to pay mounting debts, including $148 million to election workers.
Aysha Bagchi- Election workers' attorney says bankruptcy "maneuver" won't succeed.
Former New York City Mayor Rudy Giuliani filed for bankruptcy Thursday after a jury found him liable for more than $148 million in a defamation case brought by two Georgia election workers who testified that they received extreme threats after Giuliani accused them of fraud in the 2020 presidential election.
A few days after that Dec. 15 jury decision, U.S. District Judge Beryl Howell entered a judgment against Giuliani for nearly $146 million in damages, plus attorneys' fees and interest. Giuliani has vowed to appeal the decision.
Howell also opened the gate for the election workers, Ruby Freeman and her daughter Shaye Moss, to go after the money quickly. She issued an order Wednesday saying "several considerations make clear the risk that Giuliani may attempt to 'conceal and dissipate'" his assets if a normal 30-day delay remained in place. Giuliani had repeatedly failed to comply with his responsibilities in the defamation case, and he has mounting debts to lawyers and others, she said.
In his petition, filed in a New York federal bankruptcy court, the former mayor estimates he has assets worth between $1 million and $10 million, and says he has liabilities between $100 million and $500 million. He estimates he has between one and 49 creditors.
"The filing should be a surprise to no one," said Ted Goodman, a political adviser to Giuliani.
"No person could have reasonably believed that Mayor Rudy Giuliani would be able to pay such a high punitive amount. Chapter 11 will afford Mayor Giuliani the opportunity and time to pursue an appeal, while providing transparency for his finances under the supervision of the bankruptcy court, to ensure all creditors are treated equally and fairly throughout the process," Goodman said.
Bankruptcy 'maneuver ' won't succeed, election workers' attorney says
It's far from clear the bankruptcy petition will protect Giuliani from having to pay. The bankruptcy code blocks debtors from getting debts discharged if the debts arose out of certain forms of injurious conduct.
Barbara McQuade, a former U.S. attorney and legal commentator, said on X (formerly Twitter) that a court judgment for defamation qualifies as the type of intentional conduct that isn't dischargeable in bankruptcy.
In a statement provided to USA TODAY, Freeman and Moss attorney Michael Gottlieb said the bankruptcy filing wouldn't protect Giuliani.
"This maneuver is unsurprising, and it will not succeed in discharging Mr. Giuliani’s debt to Ruby Freeman and Shaye Moss," Gottlieb said.
In his bankruptcy petition, Giuliani said he owes nearly $1 million in federal and state tax debts. He also mentions a claim by Hunter Biden tied to a lawsuit. Giuliani describes that claim as "contingent" and "disputed," terms he also uses to describe several other claims, including $148 million from Freeman and Moss.
Hunter Biden sued Giuliani in September for allegedly manipulating and distributing Hunter's computer records.
The defamation judgment is one of a host of legal and personal pressures that have been mounting against Giuliani. He has also been indicted alongside former President Donald Trump and others in a Georgia case that accuses him of participating in a criminal conspiracy to overturn the 2020 presidential election. Giuliani has pleaded not guilty.
The former mayor, who is also a former federal prosecutor, also has been fighting efforts to block him from practicing law.
Contributing: Bart Jansen
