Former New York City Mayor and attorney for Donald Trump, Rudy Giuliani, filed for Chapter 11 bankruptcy after a recent jury decision requiring him to pay $146 million in damages to election workers Ruby Freeman and Shaye Moss, who sued him for defamation.
Giuliani, who estimated his liabilities between $100 million and $500 million, filed the bankruptcy less than a week after the initial judgment, initially set at $148 million but later reduced by the federal judge to $145,969,000. On Wednesday, the judge ordered Giuliani to compensate the election workers promptly, expressing concerns about his financial transparency and compliance.
Giuliani falsely accused the election workers of engaging in a fake ballot processing scheme following the 2020 presidential election.
Despite his attorney signaling financial constraints, the bankruptcy filing wasn’t a surprise. Bankruptcy allows debtors to discharge certain debts, but not all financial obligations can be wiped clean. Child support, alimony, and specific taxes must still be repaid. Giuliani faces debts to the IRS, Dominion Voting Systems, Smartmatic USA, and Hunter Biden.
The bankruptcy filing also revealed his assets estimated at $1 million to $10 million and his net worth’s significant decline.
Giuliani’s wealth, once estimated to be over $50 million, has dwindled, and he owes substantial amounts in income tax and unspecified debts to various entities. To generate cash, Giuliani engaged in unconventional methods, including selling 9/11 shirts and pitching products.
Despite the bankruptcy maneuver, Freeman and Moss’s attorney, Michael Gottlieb, expressed confidence that Giuliani would not succeed in discharging his debt to his clients.