Giuliani to Pay $400,000 to Settle Bankruptcy Case

Rudy Giuliani has made a last-minute agreement to resolve his personal bankruptcy case, agreeing to pay approximately $400,000 to a financial adviser employed by his creditors. This move prevents a thorough examination of the former New York City mayor’s finances, which a federal judge had threatened.

The agreement was submitted Wednesday in federal court in White Plains, New York. This follows almost three weeks after a judge dismissed Giuliani’s bankruptcy case due to his repeated failures to disclose income sources and comply with court orders.

After Judge Sean Lane dismissed the case, Giuliani’s lawyers stated that he lacked the funds to pay the creditors’ forensic financial adviser as required by bankruptcy laws. This led Lane to instruct all parties to propose solutions to end the case by noon Wednesday and prepare for a potential evidentiary hearing on Giuliani’s finances if no agreement was reached.

The agreement, filed just under three hours before the deadline, still requires the judge’s approval.

Creditors include former Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss. They won a $148 million defamation judgment against Giuliani for his false claims of ballot fraud related to the 2020 election. Freeman and Moss claimed Giuliani promoted Donald Trump’s falsehoods about the election being stolen, resulting in death threats that caused them severe distress.

As per the agreement, Giuliani will provide $100,000 to his lawyers to help pay the creditors’ financial adviser, Global Data Risk, and cover the remaining expenses from selling his New York City apartment or Florida condominium. These properties are valued at an estimated $5.6 million and $3.5 million, respectively, court documents indicate.

Global Data Risk is also permitted to place liens on the New York City and Florida properties to ensure payment of all fees.

Earlier this month, Rachel Strickland, a lawyer for Freeman and Moss, noted in a court filing that Global Data Risk had accumulated $400,000 in expenses during the bankruptcy case.

Strickland and Giuliani’s bankruptcy lawyers did not respond immediately to messages seeking comment Wednesday.

Lane had previously expressed concern about Giuliani’s claim that he was unable to pay Global Data Risk.

“Even assuming that the Debtor does not have the funds on hand to immediately pay these bankruptcy expenses, he certainly has considerable assets upon which he can draw to pay such expenses,” Lane remarked in a July 25 order.

With the bankruptcy hold lifted, Freeman and Moss can now seek enforcement and payment of the $148 million verdict in federal court in Washington, D.C., where they won their case.

Giuliani, once celebrated as “America’s Mayor” for his leadership after the September 11, 2001, terrorist attacks, faces multiple legal challenges. He was recently disbarred in New York for making false statements about Trump’s 2020 election loss and faces potential disbarment in Washington as well.

In Georgia and Arizona, Giuliani faces criminal charges for his role in attempting to overturn the 2020 election results. He has pleaded not guilty in both cases.

When he filed for bankruptcy, Giuliani reported nearly $153 million in existing or potential debts, including almost $1 million in tax liabilities, money owed to lawyers, and potential judgments from lawsuits. He estimated his assets were worth between $1 million and $10 million.

Recent financial filings in the bankruptcy case showed he had about $94,000 in cash at the end of May, while his company, Giuliani Communications, had approximately $237,000 in the bank. A significant source of his income over the past two years has been a retirement account, which had a balance of just over $1 million in May, down from nearly $2.5 million in 2022 after withdrawals.