Why was Rudy Giuliani’s bankruptcy filing dismissed?
The two Georgia election workers Giuliani defamed will now be able to pursue the $148m settlement awarded to them with the dismissal of the bankruptcy case.
Rudy Giuliani filed for bankruptcy in December last year after a jury awarded Ruby Freeman and her daughter, Wandrea “Shaye” Moss $148 million in a defamation lawsuit they brought against him. The former Trump lawyer spread lies about the two ex-Georgia election workers falsely claiming that they had tampered with the ballot count in the 2020 election which led to them receiving death threats and forcing them to flee their homes.
The bankruptcy filing froze their ability to pursue collection of the defamation judgement. However, on Friday, US Bankruptcy Judge Sean Lane dismissed Giuliani’s bankruptcy case which will allow Freeman and Moss to try to collect what they are owed. As well, the former New York City mayor can pursue an appeal in the defamation case.
Why was Rudy Giuliani’s bankruptcy filing dismissed?
Judge Lane cited “Giuliani’s continued failure to meet his reporting obligations and provide the financial transparency required of a debtor in possession,” in his dismissal of the Chapter 11 filing. “The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case,” Lane continued.
Lane added that forcing those he owes money to wait years without being able to seek rightful payment, even if “at best, a modest distribution seems inequitable and ill-advised.” His creditors will now be able to pursue legal remedies to get the money they are owed like seizing assets and property through a court order.
As part of the ruling Giuliani will also be barred from filing for bankruptcy protection under any chapter for a year.