Rudolph Giuliani’s efforts to evade $148 million debt to two Georgia election workers have been contested in a fresh challenge. Regardless of his bankruptcy status, the election workers have insisted in a new complaint that he must shoulder the debt.
The former New York City mayor and Trump advocate incurred this substantial debt following a court order, which found Giuliani liable for defaming election workers, Ruby Freeman and Shaye Moss, by making unsubstantiated accusations of rigged 2020 election results in favor of Joe Biden. Giuliani subsequently filed for bankruptcy.
However, the election workers have argued that the bankruptcy law impedes the discharge of debt acquired through “willful and malicious injury”. In a recent filing, they expressed their resolute stance that Giuliani cannot leverage bankruptcy to evade accountability for his actions.
Concurrently, Giuliani has reported assets worth $10.6 million against nearly $153 million in liabilities. The proposed ruling in favor of the election workers would prevent Giuliani from clearing what is currently his most significant debt.
Meanwhile, the defamation lawsuit verdict has remained a critical issue in Giuliani’s bankruptcy. Judge Sean Lane from the US Bankruptcy Court for the Southern District of New York recently allowed Giuliani to appeal the judgment amount, on the condition that the associated legal fees do not emanate from his estate.
As Giuliani’s efforts to resolve his financial woes continue, the representation on each side remains robust. Willkie Farr & Gallagher LLP represents Freeman and Moss, while Berger Fischoff Shumer Wexler & Goodman LLP stands for Giuliani.
For more details, you can refer to the full article on Bloomberg Law.