Rudy Giuliani’s bankruptcy protection case was dismissed by a federal judge on Friday, paving the way for creditors to pursue foreclosures, repossessions, and other means of collecting debt from the former mayor of New York City and Trump advisor. Giuliani requested the dismissal on Wednesday, following more than six months of missing court dates amid accusations from his creditors’ attorneys that he was dodging inquiries about his finances. Giuliani filed for bankruptcy protection after a federal jury found him guilty of defaming two Georgia election workers and awarded them $148 million in damages.
Giulani will be able to take the defamation case to appeal thanks to the dismissal. Giuliani was previously prohibited from doing so during his Chapter 11 reorganization by U.S. Bankruptcy Judge Sean Lane.
Giuliani’s lack of financial transparency throughout the proceedings has been questioned by Lane, who wrote on Friday that the man “has not even retained an accountant, which is the most rudimentary of steps.” A failure of this nature raises a red flag. “Giuliani has failed to provide an accurate and complete picture of his financial affairs in the six months that this case has been pending,” Lane stated. Giuliani is not permitted to file for bankruptcy once more, Lane wrote.
“We will continue to pursue justice and we are confident that—in the long run—our system of justice will be restored and the mayor will be totally vindicated,” Giuliani’s spokesperson, Ted Goodman, said in a statement to CBS News. Giuliani’s creditors accused him during the bankruptcy case of hiding assets and using the bankruptcy process to slow down collection. They pointed on Monday to a “completely incongruous” series of recent filings by Giuliani, including a request on June 17 for an extension to file a reorganization plan, which is necessary to show a judge the plan for repaying debts. Then, on July 1, Giuliani filed a motion to liquidate his assets, handing control to an independent trustee.
He flipped the case on its head on Wednesday by declaring he was going to ask for its dismissal. Giuliani’s legal issues have escalated along with his financial difficulties. He’s entered not guilty pleas to charges in Georgia and Arizona stemming from his alleged efforts to undermine the 2020 presidential election results.
Giuliani, a former U.S. Attorney for the Southern District of New York, was disbarred from practicing law in the state on July 2. A board in Washington, D.C., recommended in May that he be disbarred there as well.