Rudy Giuliani, the former mayor of New York City and personal attorney to Donald Trump, has agreed to a settlement to conclude his Chapter 11 bankruptcy case. This move comes after prolonged financial and legal difficulties, including a defamation judgment for $148 million awarded to two former Georgia election workers, Ruby Freeman and Shaye Moss. The duo accused Giuliani of falsely alleging their involvement in election fraud during the 2020 election, leading to severe personal repercussions.
The agreement requires Giuliani to pay $100,000 upfront to his lawyers at the Berger, Fischoff, Shumer, Wexler & Goodman firm, which will be allocated to the creditors’ financial advisor, Global Data Risk. The remaining balance will be covered through the sale of one of his properties, either a New York apartment valued at $5.6 million or a Florida condo worth $3.5 million. This arrangement allows Global Data Risk to place liens on both properties to ensure full payment.
This last-minute deal, filed just hours before a court-imposed deadline, spares Giuliani from a potentially damaging examination of his financial status in court. The agreement must still be approved by U.S. Bankruptcy Judge Sean Lane, who has been critical of Giuliani’s transparency throughout the proceedings. In a previous order, Judge Lane expressed concern over Giuliani’s financial opacity, stating, “Even assuming that the Debtor does not have the funds on hand to immediately pay these bankruptcy expenses, he certainly has considerable assets upon which he can draw”.
Giuliani’s financial troubles are part of a broader array of legal issues, including a potential $1.3 billion lawsuit from Dominion Voting Systems and allegations of sexual misconduct and unpaid wages by former employee Noelle Dunphy. Furthermore, Giuliani has been disbarred in New York and faces disbarment in Washington, D.C., following accusations of spreading false claims about the 2020 election.
Despite Giuliani’s financial claims in recent filings, indicating $94,000 in cash and a dwindling retirement fund of just over $1 million, the judge’s skepticism remains a barrier to the swift resolution of his bankruptcy case. As Freeman and Moss proceed with seeking enforcement of their defamation judgment, Giuliani’s financial and legal challenges are far from over .
