Rudy Giuliani Files for Bankruptcy After Defeat in $150-Million Defamation Verdict

Giuliani's bankruptcy declaration reveals debts ranging between USD 100 million and USD 500 million

Former New York City Mayor Rudy Giuliani filed for bankruptcy in New York's southern district court on Thursday, following a recent jury decision that ordered him to pay almost $150 million to two former Georgia election workers for defamation.

Giuliani's bankruptcy declaration reveals debts ranging between $100 million and $500 million, with assets valued up to $10 million.

Rudy Giuliani

According to CNN, this bankruptcy marks another setback for Giuliani, who served as Donald Trump's attorney after the 2020 presidential election. The former mayor, federal prosecutor, and once a leading contender for the Republican presidential nomination is grappling with the aftermath of his legal battles.

Among Giuliani's listed liabilities are nearly $1 million in unpaid taxes, along with substantial amounts owed to lawyers and accountants. The filing also highlights ongoing defamation lawsuits, including three cases related to his post-2020 election statements. If ruled against, these cases could further contribute to Giuliani's mounting debt.

Ted Goodman, Giuliani's political adviser, commented, "The filing should be a surprise to no one. No person could have reasonably believed that Mayor Rudy Giuliani would be able to pay such a high punitive amount. Chapter 11 will afford Mayor 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."

This development comes on the heels of a federal judge's decision allowing the two plaintiffs, Rose Freeman and Shaye Moss, to initiate collection efforts from Giuliani immediately. US District Judge Beryl Howell emphasized that Giuliani had evaded disclosing his net worth, failed to comply with court orders to reimburse the women for legal fees, and consistently asserted financial hardship.

During the trial, Giuliani's attorney, Joseph Sibley, argued that Freeman and Moss were seeking "the civil equivalent of the death penalty," attempting to bring an end to Giuliani's reputation. Giuliani may seek the bankruptcy court's assistance in excusing his debt to Moss and Freeman, a strategy reminiscent of Alex Jones' failed attempt in the Sandy Hook defamation case. However, Giuliani's acknowledgment of defaming the two with malice in the 2020 election defamation case poses a challenge, making it harder for him to evade his financial obligations.

Meanwhile, Moss and Freeman's legal representatives have signaled their intent to swiftly pursue liens on Giuliani's properties in New York and Florida and investigate potential sources of income, such as Newsmax, where Giuliani hosts a show.