(ImpactHeadlines.com)—Former New York City Mayor Rudy Giuliani’s bankruptcy protection case was dismissed by a federal judge on Friday. The news means that creditors are now clear to begin repossessing belongings and pursuing foreclosures to collect on Giuliani’s $148 million in damages debt. Giuliani, who served as a personal lawyer to former President Donald Trump, had hoped to successfully file for bankruptcy to avoid paying damages to two Georgia election workers after a jury found that he defamed them in the wake of the 2020 presidential election.
The dismissal of Giuliani’s bankruptcy protection case has additional ramifications, however. The former mayor will now likely move ahead with an appeal of the defamation case filed by election workers Ruby Freeman and Shaye Moss. Judge Sean Lane had previously prevented Giuliani from appealing the case while he attempted to file for Chapter 11 bankruptcy.
Throughout the process, Judge Lane criticized Giuliani for not being honest about his finances. In Friday’s ruling, the judge stated that Giuliani had not retained an accountant, which was “the most rudimentary of steps” that constituted a “clear red flag.”
The Friday ruling also prevents Giuliani from pursuing bankruptcy protection again for a year. A spokesperson for the former mayor appeared to defend Giuliani’s behavior throughout the case, arguing that the lawsuit was used as an effort to reveal personal information that was not relevant to the case.
Spokesman Ted Goodman said that discovery requests were “voluminous and overly broad” and that despite the setback, Giuliani’s team will continue to “pursue justice” until he is vindicated.
Meanwhile, Giuliani’s creditors—who are likely to begin the collections process soon—have repeatedly accused him of hiding assets and using his bankruptcy application to slow down the collection.
Since representing former President Donald Trump in a series of high-stakes meetings with state legislatures in the wake of the 2020 presidential election, Giuliani has faced an onslaught of criticism from left-leaning media outlets. His legal woes are arguably among the worst of those who defended the president post-2020, and some have criticized former President Donald Trump for having little to say about what is happening to his former colleague. In 2021, reports emerged that former President Trump was “refusing to pay” Giuliani’s legal fees following a “falling out.”
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