Rudy Giuliani files for bankruptcy after $148 million defamation case. Rudy Giuliani has said he is having financial difficulties because of increasing legal fees and expenses.
Rudy Giuliani, a friend of former President Donald Trump, has declared bankruptcy shortly after being told to pay $148 million in a defamation case.
This legal trouble arose from Giuliani making false claims about two election workers in Georgia messing with votes during the 2020 election. His bankruptcy filing reveals he owes a lot of money, including unpaid taxes and legal fees.
Giuliani’s spokesperson, Ted Goodman, mentioned that this bankruptcy move shouldn’t be a surprise to anyone.
In a statement, Goodman said that “it was unrealistic to expect Giuliani to pay such a large punitive amount.”
He explained that filing for bankruptcy in New York gave Giuliani a chance to appeal the decision while ensuring his finances were transparent under the guidance of the bankruptcy court.
At 79 years old, Giuliani had already spoken earlier this year about facing financial difficulties due to rising legal fees and expenses. The recent legal setback came when a jury ordered him to pay $20 million to two Georgia poll workers, Ruby Freeman and her daughter Wandrea “Shaye” Moss.
They had sued Giuliani for falsely claiming they tampered with votes, causing them emotional distress. The jury also added over $16 million each for emotional distress and an additional $75 million in punitive damages.
It is unclear how the bankruptcy declaration will impact on the payments, but US bankruptcy law does not allow the dissolution of debts stemming from “wilful and malicious injury” inflicted on another party.
Speaking outside the court after the order, Giuliani, known for his strong statements, said, “I don’t regret a damn thing.” However, a judge later expressed concerns about Giuliani complying with the payment and ordered him to start paying the two women immediately.
It’s uncertain how the bankruptcy filing will affect these payments. U.S. bankruptcy law doesn’t allow debts resulting from “wilful and malicious injury” to be dissolved. The bankruptcy paperwork lists almost 20 creditors, including Freeman, Moss, and Hunter Biden, who sued Giuliani in September.
Other creditors involve the Internal Revenue Service (IRS), which Giuliani owes more than $700,000 in income tax, and two voting software companies that sued him over false claims of election fraud.
Even Giuliani’s former law firm, Davidoff Hutcher & Citron LLP, is listed among the creditors. This firm had sued him in September for $1.4 million in unpaid legal fees.
Despite filing for bankruptcy, Giuliani still faces other legal challenges, including an indictment in Georgia on racketeering and conspiracy charges, along with a $10 million lawsuit by a former business associate over sexual harassment claims.
In essence, Giuliani’s bankruptcy move comes as a response to the hefty defamation penalty he was ordered to pay. This legal situation is adding to his existing financial problems, and the bankruptcy filing is an attempt to navigate through these challenges, offering a chance for appeal and managing debts under the oversight of the bankruptcy court.
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