Giuliani remains in bankruptcy limbo over unpaid fees

Source: Reuters

July 25, 2024 5:16 PM EDT Updated 3 hours ago


NEW YORK, July 25 (Reuters) - A U.S. judge said Thursday that he may reverse course on ending Rudy Giuliani's bankruptcy and instead keep Donald Trump's former lawyer under Chapter 11 supervision until he pays about $350,000 in fees owed to his creditors. U.S. Bankruptcy Judge Sean Lane had ruled on July 12 that Giuliani should be kicked out of bankruptcy over his failure to make required financial disclosures.

But the decision did not immediately take effect, and Lane said in a Thursday court order that he was having second thoughts due to the former New York mayor's refusal to reimburse creditors who hired investigative accountants to fill gaps in his financial reports. Ending the bankruptcy without taking care of those fees would essentially reward Giuliani for failing to make required financial disclosures, according to Lane.

"There may come a point when dismissal is no longer an option," Lane wrote. Giuliani, 80, filed for bankruptcy protection in December after a Washington, D.C., court ordered him to pay $148 million to two Georgia election workers who he falsely accused of rigging votes in the 2020 presidential election which was won by Democrat Joe Biden. There is no question that Giuliani owes the fees or that he has the ability to pay them – Giuliani’s apartments in New York and Florida are worth approximately $9 million, Lane wrote. Giuliani has "simply refused" to pay them, according to Lane.

Lane ordered Giuliani and his creditors to suggest alternative paths forward by July 31. Once dismissed from bankruptcy, Giuliani’s creditors will be free to pursue lawsuits against him for defamation, sexual harassment and other claims stemming from Giuliani's work for Trump, the former Republican president, as he sought to overturn his loss in the 2020 election.

Read more: https://www.reuters.com/world/us/giuliani-remains-bankruptcy-limbo-over-unpaid-fees-2024-07-25/