ABC News reported that a judge is likely to dismiss Rudy Giuliani's bankruptcy case, agreeing with his lawyers and main creditors, though his debts will remain.
The bankruptcy case involves Rudy Giuliani and his major creditors, Ruby Freeman and Wandrea “Shaye” Moss, who secured a $148 million defamation judgment against him. Accusations have surfaced that Giuliani may have ignored bankruptcy regulations and possibly concealed assets.
A dismissal would strip Giuliani of bankruptcy protection without eliminating his financial obligations. Creditors, including Freeman and Moss, could then explore additional legal avenues to recover their money, such as seizing his assets.
U.S. Bankruptcy Judge Sean Lane revealed his intent to make a ruling by the end of the week. A hearing was set for Friday at 1 p.m., during which Lane indicated his inclination to dismiss the case. He dismissed the possibility of converting it to liquidation, stating it wouldn't benefit the creditors.
Gary Fischoff, Giuliani's attorney, argued that dismissing the case would allow his client to appeal the defamation judgment. Rachel Strickland, representing Freeman and Moss, contended that Giuliani was using bankruptcy to evade his debts.
During the hearing, Giuliani interrupted, expressing outrage at Strickland’s remarks, which he claimed were defamatory. However, a committee of his other creditors still argues for keeping the case active with the appointment of a trustee.
In December, Giuliani filed for Chapter 11 bankruptcy following the defamation judgment. Earlier this month, he sought conversion to Chapter 7 liquidation but later shifted to pressing for dismissal.
A potential dismissal would enable Freeman and Moss to return to court in Washington, D.C., sidestepping further legal fees. Judge Lane mentioned banning Giuliani from filing for bankruptcy again for 12 months should the case be dismissed.
Freeman and Moss have a pending request to prevent the $148 million judgment from being discharged in bankruptcy. Giuliani is also grappling with disbarment and criminal charges in Georgia and Arizona.
Giuliani listed nearly $153 million in potential debts and estimated assets valued between $1 million and $10 million. Recent submissions reveal he has approximately $94,000 in cash, while his company holds $237,000 in the bank.
Giuliani's main income comes from a retirement account, which has reduced significantly from nearly $2.5 million in 2022 to a little over $1 million by May.
His financial records indicate substantial personal expenses, including $33,000 in condo and co-op costs, $850 for food, and $390 on cleaning services.
Judge Lane is considering dismissing Giuliani's bankruptcy case due to concerns about his past behavior. Giuliani's attorney supports the dismissal to enable an appeal, while creditors are determined to pursue repayment through other legal actions, as Giuliani's debts will remain.
