Rudy Giuliani has struck a last-minute deal to end his personal bankruptcy case.
According to Newsweek, the former attorney for Donald Trump will pay $100,000 in cash and use proceeds from the sale of one of his luxury apartments to settle his debts.
Giuliani's agreement prevents him from answering questions about his financial circumstances in bankruptcy court. The deal follows Judge Sean Lane's dismissal of his bankruptcy case, who had criticized Giuliani for failing to cooperate with court orders.
Giuliani filed for Chapter 11 bankruptcy protection in December 2023, shortly after being ordered to pay $148 million in defamation damages to Ruby Freeman and Wandrea "Shaye" Moss.
The defamation case involved harassment and death threats against Freeman and Moss, former Georgia election workers, due to false 2020 election fraud claims spread by Giuliani and Trump.
Rachel Strickland, a lawyer for Freeman and Moss, stated that the creditors' financial adviser, Global Data Risk, was owed around $400,000 in expenses during the bankruptcy case. Giuliani's agreement includes a $100,000 payment to his lawyers to help pay off some of the Global Data Risk debt.
Giuliani will sell his apartment in New York or Florida to pay off the rest of the debt. The New York property is valued at $5.6 million, and the Florida condo is worth approximately $3.5 million. Global Data Risk can place liens on Giuliani's apartments to ensure payment of its fees.
Giuliani's legal team has been contacted for comment. Giuliani, who was recently disbarred in New York for pushing false 2020 election fraud claims, is facing a host of financial difficulties on top of the $148 million lawsuit. He is also being sued by Noelle Dunphy, a former employee who alleges the former New York mayor sexually abused her and owes her $2 million in back wages, allegations which Giuliani has denied.
Dominion Voting Machines has filed a $1.3 billion lawsuit against Giuliani. It accuses him of falsely claiming its voting machines were used to rig the 2020 presidential election in favor of President Joe Biden over Trump. Recent financial filings in the bankruptcy case indicated Giuliani had about $94,000 cash in hand at the end of May and that his main source of income was a retirement fund, which had a balance of just over $1 million remaining.
Giuliani’s last-minute agreement to settle his bankruptcy case marks a significant development in his ongoing financial struggles. By agreeing to pay $100,000 in cash and liquidating one of his luxury properties, Giuliani seeks to address the substantial debts he owes. The settlement also spares him from further scrutiny in bankruptcy court regarding his financial situation.
Rachel Strickland, the lawyer for Freeman and Moss, highlighted the considerable expenses owed to Global Data Risk during the bankruptcy proceedings.
Global Data Risk is also allowed under the agreement to place liens on the apartments to ensure Giuliani pays all its fees. Giuliani's financial difficulties, compounded by multiple lawsuits and disbarment, underscore his situation's gravity.
Rudy Giuliani has reached a last-minute deal to end his personal bankruptcy case, agreeing to pay $100,000 in cash and to sell one of his luxury apartments to settle his debts. This agreement follows a court dismissal and criticism for non-compliance with proceedings. Giuliani's financial struggles are further complicated by multiple lawsuits, including a $148 million defamation case and a $1.3 billion lawsuit from Dominion Voting Machines. The settlement prevents him from answering questions in bankruptcy court and involves significant property transactions. The overall financial and legal pressures on Giuliani continue to mount amidst these developments.
