On Thursday, U.S. Bankruptcy Court Judge Sean Lane, who oversees Rudy Giuliani’s bankruptcy case, hinted that he might need to rethink his decision to dismiss the case. This reconsideration comes after Giuliani failed to pay some of his creditors’ administrative expenses.
Judge Lane, from the Southern District of New York, previously indicated he was ready to dismiss Giuliani’s bankruptcy petition. The dismissal was due to Giuliani’s repeated failure to provide essential financial details as ordered. The judge’s Thursday order revealed that despite his previous intention to dismiss, the case remains open because Giuliani has not settled the required administrative expenses.
The potential dismissal of the bankruptcy case would allow two former election workers from Georgia to start collecting on a $146 million verdict awarded against Giuliani. This verdict was a result of Giuliani’s repeated defamatory statements about the workers following the 2020 presidential election.
In the recent court order, Judge Lane noted that Giuliani proposed giving the creditors’ accountants a lien on his New York apartment, which is currently up for sale. This proposal would ensure that the accountants are paid only when the apartment is sold. However, Giuliani has claimed he lacks the funds to cover these expenses. Judge Lane expressed doubts about this claim, citing Giuliani’s lack of transparency regarding his financial situation, which makes it challenging to determine his ability to pay.
Judge Lane suggested that a hearing might be necessary to assess Giuliani’s financial state thoroughly. This hearing could involve reviewing documents and potentially requiring Giuliani to testify under oath. However, Lane cautioned that such a hearing might replicate the issues of financial transparency that have troubled the case thus far.
Another possible course of action is to continue the bankruptcy proceedings and appoint a trustee to manage Giuliani’s finances. This trustee could oversee the liquidation of assets, such as the New York apartment, to satisfy the outstanding administrative costs. The judge has asked all parties involved, including Giuliani, to submit their opinions on the best way to proceed by Wednesday.
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Among the major creditors in this case are former Georgia election workers Ruby Freeman and her daughter Wandrea “Shaye” Moss. Giuliani filed for bankruptcy in December, shortly after a jury awarded Freeman and Moss nearly $150 million for his false accusations of election fraud against them.
