Rudolph Giuliani’s personal bankruptcy case has been dismissed by a federal judge, ending nearly seven months of stagnation and leaving the former New York City mayor vulnerable to creditors seeking to recover over $150 million. The dismissal was ordered by Judge Sean H. Lane of the US Bankruptcy Court for the Southern District of New York, who cited Giuliani’s persistent failure to provide comprehensive financial records and make substantive progress, according to court documents.
Judge Lane articulated that Giuliani’s approach starkly contrasted with that of most debtors, who typically attempt to rectify deficiencies when confronted with complaints about financial transparency. “By contrast, Mr. Giuliani has done nothing,” remarked Lane.
The decision to terminate the bankruptcy implies that Giuliani will now have to address his considerable debts outside of bankruptcy protection. Creditors, including Georgia election workers who secured a $148 million defamation judgement against him, will need to revert to civil litigation to endeavor to recover their losses.
In his decision, Judge Lane stated that dismissing the bankruptcy was “in the best interests of creditors.” He noted that many plaintiffs in these cases have a right to a jury trial, which would be better handled outside the bankruptcy framework. Additionally, the judge prohibited Giuliani from refiling for bankruptcy for at least a year.
The genesis of Giuliani’s financial troubles can be traced back to his participation in Donald Trump’s efforts to contest the 2020 presidential election results. This involvement, featuring prominently discredited theories, led to the suspension of his legal license and numerous defamation suits, including those from voting machine companies such as Dominion and Smartmatic. Giuliani also faces sexual harassment allegations from his former employee, Noelle Dunphy, whose lawsuit will return to active litigation following the dismissal of the bankruptcy case.
Giuliani’s bankruptcy efforts had already encountered significant setbacks. During the Chapter 11 proceedings, a federal judge upheld a $148 million defamation verdict against him, further aggravating his financial predicaments. The ruling echoes a similar decision imposed on right-wing commentator Alex Jones, who was also barred from using bankruptcy to avoid defamation-related judgments.
Complicating matters, Giuliani’s financial assets, including his high-value residences in Manhattan and Palm Beach, Fla., have been targets of creditor-led investigations. The discussions surrounding potential asset liquidation have only added to the fallen attorney’s tribulations. His disbarment from the practice of law in New York and the cancellation of his WABC radio talk show have further constricted his financial avenues.
For further details, the case is documented under In re Rudolph W. Giuliani, Bankr. S.D.N.Y., No. 23-12055.
This recent development represents a significant turn of events for Giuliani, who once enjoyed a successful career as a federal prosecutor, politician, and a high-earning law firm partner.