Rudy Giuliani, the former mayor of New York City, has filed for bankruptcy following a court order to pay $148 million to two ex-Georgia election workers he wrongfully accused of fraud after the 2020 presidential election.
Once celebrated as "America's mayor" for his role post-9/11, Giuliani's financial troubles stem largely from his legal work for former President Donald Trump. He is also facing criminal charges in Georgia related to this matter.
According to his bankruptcy filing in a U.S. court in New York, Giuliani reported liabilities between $100 million and $500 million, with assets ranging from $1 million to $10 million. Ted Goodman, Giuliani's spokesperson, stated that the bankruptcy filing would allow Giuliani time to appeal the hefty $148 million penalty and ensure equitable treatment of other creditors. Goodman highlighted the improbability of Giuliani's ability to pay such a substantial punitive amount.
U.S. bankruptcy proceedings typically provide a way for individuals and companies to eliminate or restructure their debts. Giuliani's filing will temporarily halt all pending civil lawsuits against him. However, this may not absolve him of his financial obligations to the election workers, Wandrea "Shaye" Moss and her mother Ruby Freeman, who were subjected to threats after Giuliani's baseless fraud claims. Court rulings have indicated that defamation-related debts cannot be discharged if the debtor acted in a "willful and malicious" manner.
Despite acknowledging the defamatory nature of his claims in court, Giuliani has continued to repeat these accusations, leading to a second lawsuit by Moss and Freeman. A federal judge recently ordered Giuliani to start paying these women immediately, citing concerns he might conceal his assets. The women's lawyer has stated that bankruptcy wouldn't clear Giuliani's debt to them.
Giuliani, who was Time magazine's Person of the Year in 2001 and ran unsuccessfully for the 2008 Republican presidential nomination, served as Trump's personal lawyer. He led Trump's attempts to overturn the 2020 election results, engaging in numerous unsuccessful lawsuits and making unfounded public claims of election fraud. His efforts, often seen as haphazard, included a notorious press conference at a landscaping company mistakenly thought to be a luxury hotel and an incident where a dark substance, possibly hair dye, was seen dripping down his face.
He also faces criminal charges in Georgia for election subversion, along with Trump and other co-defendants, to which he has pleaded not guilty.
