Rudy Giuliani, the ex-mayor of New York City and former personal attorney to Donald Trump, has initiated bankruptcy proceedings. This move comes in the aftermath of a substantial fine imposed on him by a jury in a defamation case in Georgia, rendering him financially depleted. Seeking refuge in Chapter 11, experts cast doubt on its effectiveness as a means to evade the formidable fine.
Following the 2020 presidential election, Rudy Giuliani, then serving as the former president’s personal lawyer, alleged that Georgia election workers Ruby Freeman and Shaye Moss had manipulated the election results.
Relying on footage from the election count, Giuliani asserted that the video depicted the women exchanging a USB stick containing data. They contended that the object in question was a piece of candy. Subsequently, the women filed a defamation lawsuit against him, asserting that their reputations had been tarnished, leading to harassment and death threats.
Opting not to mount a defense, Giuliani faced the consequences, as on December 15, a federal jury ruled in favor of the two women, a mother and daughter duo, ordering him to pay a substantial sum of $148 million.
On December 21, Giuliani filed for Chapter 11 bankruptcy, stating that his assets are estimated between $1 million and $10 million, with liabilities ranging from $100 million to $500 million. The exact determination of his net worth is challenging due to his non-compliance with court requests for financial details. However, it seems unlikely that he has a sum anywhere near the magnitude necessary to cover the substantial fine.
Michael Gottlieb, the attorney representing Freeman and Moss, concurs with this sentiment. In a statement to the press, he expressed that Giuliani’s bankruptcy filing was expected and is unlikely to result in the discharge of his debt. Nevertheless, at this juncture, it seems to be the only recourse left for Giuliani.