NEW YORK, USA – Rudy Giuliani, a prominent associate of former President Donald Trump, has declared bankruptcy following a series of financial and legal challenges, including a recent $148 million defamation verdict.
This move comes as Giuliani faces substantial debts from legal fees, unpaid taxes, and multiple lawsuits.
The bankruptcy filing occurred in New York shortly after Giuliani was ordered to compensate Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss $20 million each for defamatory claims he made, alleging they tampered with votes in the 2020 election. The court also awarded them over $16 million each for emotional distress and ordered an additional $75 million in punitive damages to be shared between them.
Ted Goodman, a spokesman for Mr. Giuliani, stated that the bankruptcy filing should not surprise anyone, given the magnitude of the financial obligations imposed on Giuliani. Goodman emphasized that the bankruptcy process would allow Giuliani to seek an appeal while his finances are transparently managed under court supervision.
Giuliani, 79, had previously admitted to facing financial difficulties due to escalating legal costs. His bankruptcy filing lists nearly 20 creditors, including Freeman, Moss, and Hunter Biden, who filed a lawsuit against him in September. The Internal Revenue Service (IRS) is also listed, with Giuliani owing over $700,000 in income taxes. Additionally, two voting software companies and a law firm, Davidoff Hutcher & Citron LLP, which sued him for $1.4 million in unpaid legal fees, are among the creditors.
Despite declaring bankruptcy, it remains uncertain how this will affect his obligation to make payments, as U.S. bankruptcy law does not typically permit the discharge of debts resulting from “willful and malicious injury” to others.
Giuliani also faces further legal challenges, including an indictment in Georgia on racketeering and conspiracy charges, and a $10 million lawsuit from a former business associate over sexual harassment claims.
Freeman and Moss, speaking outside the E. Barrett Prettyman U.S. District Courthouse, expressed the significant impact Giuliani’s false claims had on their lives. Freeman remarked that she would always need to be cautious due to public recognition fears stemming from these claims.
As Giuliani navigates this complex legal and financial landscape, the implications of his bankruptcy filing on his various legal battles and debts remain a subject of close observation.
