Former N.Y. mayor declares bankruptcy
Files days after $148M ruling in Georgia case
NEW YORK — Rudy Giuliani filed for bankruptcy on Thursday, acknowledging severe financial strain exacerbated by his pursuit of former President Donald Trump’s lies about the 2020 election and a jury’s verdict last week requiring him to pay $148 million to two former Georgia election workers he defamed.
The former New York City mayor listed nearly $153 million in existing or potential debts, including almost $1 million in state and federal tax liabilities, money he owes lawyers, and many millions of dollars in potential judgments in lawsuits against him. He estimated he had assets worth $1 million to $10 million.
Mr. Giuliani had been teetering on the brink of financial ruin for several years, but the eye-popping damages award to former election workers Ruby Freeman and Wandrea’ “Shaye” Moss pushed him over the edge. The women said Mr. Giuliani’s targeting of them after Republican Trump narrowly lost Georgia to Democrat Joe Biden led to death threats that made them fear for their lives.
Ted Goodman, a political adviser and spokesperson for Mr. Giuliani, said in a statement that Mr. Giuliani’s decision to seek bankruptcy protection “should be a surprise to no one” because “no person could have reasonably believed that Mayor Giuliani would be able to pay such a high punitive amount.”
The Chapter 11 filing will give Mr. Giuliani “the opportunity and time to pursue an appeal, while providing transparency for his finances under the supervision of the bankruptcy court, to ensure all creditors are treated equally and fairly throughout the process,” Mr. Goodman said.
But declaring bankruptcy likely won’t erase the $148 million verdict. Bankruptcy law doesn’t allow for the dissolution of debts that come from a “willful and malicious injury” inflicted on someone else. A judge said Wednesday that Ms. Freeman and Ms. Moss could start pursuing payment immediately, saying any delay could give Mr. Giuliani time to hide assets.
“This maneuver is unsurprising, and it will not succeed in discharging Mr. Giuliani’s debt to Ruby Freeman and Shaye Moss,” said their lawyer, Michael Gottlieb.
After the verdict, Mr. Giuliani repeated his stolen election claims, insisted he did nothing wrong and suggested he’d keep pressing his claims even if it meant losing all his money or going to jail. His rhetoric prompted Ms. Freeman and Ms. Moss to sue him again this week.
The Dec. 15 verdict was the latest and costliest sign of the mounting financial toll incurred by the 79year- old Mr. Giuliani, a onetime Republican presidential candidate and high-ranking Justice Department official once heralded as “America’s Mayor” for his calm and steady leadership after the terrorist attacks on Sept. 11, 2001.
Once swimming in cash as a globetrotting security consultant, Mr. Giuliani’s money woes intensified amid investigations, lawsuits, fines, sanctions and damages related to his work helping Mr. Trump try to overturn the 2020 election.
Among his potential debts, he listed lawsuits brought by two voting machine manufacturers who say he and others defamed them with claims of a stolen election. A lawyer for Mr. Giuliani, Adam Katz, suggested at an August court hearing in one of those cases that Mr. Giuliani was “close to broke,” and unable to pay a number of bills, including a $12,000 to $18,000 tab for a company to search through his electronic records for evidence.
In court papers rebuffing voting machine-maker Smartmatic’s demand for an accounting of his finances, Mr. Giuliani’s lawyers disclosed that he was so hard up for money that he solicited third-party donations to pay a prior $300,000 bill to the electronic discovery firm. In September, Mr. Giuliani’s former lawyer Robert Costello sued him for nearly $1.4 million in unpaid legal bills.