Giuliani’s Bankruptcy Dismissed; Creditors Still Owed $150-M

Rudolph Giuliani’s personal bankruptcy case was thrown out by a federal judge following nearly seven months of stalled progress, leaving the former New York City mayor without court protection from creditors owed more than $150 million, Alex Wolf reported for Bloomberg News.

It remains to be seen how Giuliani will address mounting debts outside of bankruptcy and the resumption of lawsuits that were paused by his Chapter 11 case. I Photo: Gage Skidmore Flickr

Giuliani’s bankruptcy case, which has been marked by disputes with creditors over repeated failures to produce thorough financial records, can no longer continue, Judge Sean H. Lane of the US Bankruptcy Court for the Southern District of New York ruled.

Giuliani’s lack of transparency and failure to make meaningful progress over the course of his Chapter 11 justify dismissing the case, said Lane.

“When confronted with complaints about a failure to satisfy the Bankruptcy Code’s obligations as to financial transparency, most debtors will respond by curing at least some—if not all—of the defects. By contrast, Mr. Giuliani has done nothing,” Lane said.

It remains to be seen how Giuliani will address mounting debts outside of bankruptcy and the resumption of lawsuits that were paused by his Chapter 11 case.

Creditors, including two Georgia 2020 election workers who won a $148 million defamation judgment against Giuliani, will be forced back into civil court in an attempt to recover what they can.