The judge in New York has dismissed Rudy Giuliani’s Chapter 11 bankruptcy case, allowing him to appeal a $148 million defamation judgment. U.S. Bankruptcy Judge Sean Lane finalized the decision after indicating his inclination to do so earlier in the week. Both Giuliani’s lawyers and the two former election workers involved in the case, Ruby Freeman and Shaye Moss, agreed that dismissing the case was the most appropriate course of action.
The bankruptcy filing last year put a pause on enforcing the defamation judgment against Giuliani, but the judge’s ruling on Friday now allows the two workers to pursue litigation or existing judgments against him. The judge’s decision was based on evidence showing that Giuliani failed to meet financial transparency obligations required of a debtor. The ruling also stated that dismissing the bankruptcy was in the best interest of Giuliani’s creditors.
Under the order, Giuliani, who is a former attorney for Donald Trump, is prohibited from refiling for Chapter 11 bankruptcy for one year. The judge deemed this decision to be in the best interest of the former mayor’s creditors. The year-long bar on filing for bankruptcy provides creditors with the opportunity to pursue existing judgments or unresolved litigation.
Giuliani’s attorneys had requested the dismissal of the bankruptcy case, stating that it would allow their client to focus on appealing the defamation case. While other creditors wanted to continue the bankruptcy case with a court-appointed trustee overseeing Giuliani’s assets, Giuliani preferred converting the case to a Chapter 7 liquidation. However, concerns were raised about the high fees associated with liquidation.
Other Legal Issues
Aside from the bankruptcy case, Giuliani is facing criminal charges in Arizona and Georgia related to his involvement in challenging the 2020 election results. He has denied any wrongdoing and pleaded not guilty to the charges. In a recent court hearing, Giuliani criticized the indictment in the Arizona case, calling it an embarrassment to the legal system.
Earlier this month, a New York appeals court revoked Giuliani’s law license in the state due to his actions undermining the electoral process. Giuliani has been vocal on social media, asserting that the 2020 election was stolen from Trump.
Giuliani expressed his lack of surprise at being disbarred in New York, attributing it to false arguments and an activist complaint against him. The Epoch Times reached out to Giuliani’s attorneys for comment on the latest developments.
(The Associated Press contributed to this report.)
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