Former Mayor of New York City Rudy Giuliani, once hailed as “America’s mayor” for his leadership during the aftermath of the 9/11 attacks, has filed for bankruptcy in the wake of mounting legal challenges.
The move comes just days after Giuliani was ordered to pay $148 million to two former Georgia election workers whom he falsely accused of fraud following the 2020 US presidential election.
Liabilities and Trump Association
In the filing submitted to the U.S. bankruptcy court in New York, Giuliani disclosed between $100 million and $500 million in liabilities, with assets ranging from $1 million to $10 million. The bankruptcy is linked to his extensive legal work on behalf of former President Donald Trump, coinciding with his criminal charges in Georgia.
Giuliani’s bankruptcy filing aims to give him time to appeal the substantial $148 million penalty and manage his debts more effectively. A spokesperson for Giuliani, who is no longer serving as Trump’s lawyer, emphasized the necessity of the bankruptcy filing to ensure fair treatment of all creditors, given the challenging financial situation.
Bankruptcy proceedings can temporarily halt civil lawsuits, but it remains uncertain whether this will exempt Giuliani from paying the $148 million defamation penalty to the former Georgia election workers. Defamation penalties are typically not dischargeable in bankruptcy if the debtor has engaged in “wilful and malicious” conduct, as ruled by judges in previous cases.
The two former election workers, Wandrea “Shaye” Moss and her mother, Ruby Freeman, faced threats after Giuliani’s false claims of voting fraud. Despite admitting in court that his statements were defamatory, Giuliani has continued to repeat the allegations, prompting the two workers to file a second lawsuit. A federal judge recently ordered Giuliani to commence immediate payments to the women.
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Giuliani’s Downfall and Election Fallout
Giuliani, named Time magazine’s Person of the Year after the 9/11 attacks, has faced a series of legal challenges, including the suspension of his law license in New York and potential disbarment in Washington. His role as Trump’s lawyer during the 2020 election also involved unsuccessful legal efforts to challenge the results and public statements falsely alleging election fraud.
Giuliani faces criminal charges of election subversion in Georgia, alongside Trump and others, maintaining his plea of not guilty. The bankruptcy filing lists additional creditors, including Hunter Biden and a former employee, Noelle Dunphy, who are both suing Giuliani for different reasons. Despite the bankruptcy, Giuliani’s legal battles continue, reflecting the complexities surrounding his financial and legal predicament.
Rudy Giuliani’s bankruptcy filing marks a significant chapter in the ongoing legal turmoil surrounding the former mayor. As he navigates financial challenges and legal battles, the repercussions of his actions during the post-election period continue to unfold.
The bankruptcy proceedings will undoubtedly play a crucial role in determining the future course of Giuliani’s legal and financial standing.
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