Rudy Giuliani filed for bankruptcy just days after a judge ordered the former New York City mayor to pay $148 million to two Georgia election workers who won a defamation lawsuit suit against him.
Giuliani has suffered financial troubles after representing former President Donald Trump amid Trump's legal challenges to the 2020 election, which he has claimed was stolen despite a lack of substantial evidence. He has spent millions of dollars defending himself in various legal cases related to alleged attempts to subvert President Joe Biden's victory.
His bankruptcy comes after being ordered to pay millions to Ruby Freeman and Shaye Moss, mother-daughter election workers whom he defamed by falsely claiming they committed election fraud while counting ballots in Fulton County in 2020. Giuliani said he does not "regret a damn thing" and has vowed to file an appeal.
Giuliani filed a chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of New York on Thursday, according to court documents. He is facing up to $500 million in debt, according to the bankruptcy filing.
Heath Berger, an attorney listed as representing Giuliani, told Newsweek the filing "should be a surprise to no one."
"No person could have reasonably believed that Mayor Giuliani would be able to pay such a high punitive amount," he wrote. "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."
The former mayor listed his liabilities as somewhere in the range of $100 million and $500 million and his assets as between $1 million and $10 million.
Giuliani owes $989,918 in taxes to the government, according to the filing.
President Joe Biden's son, Hunter Biden, who has faced his own legal troubles surrounding alleged tax fraud, was also listed as a creditor in the bankruptcy petition. It remained unknown how much money Giuliani may owe Hunter Biden. The exact reason Biden is listed is unclear, with the filing only noting "lawsuit."
Freeman and Moss are also listed as creditors, though legal experts have noted that bankruptcy may not save him from having to make this payment.'
"Defamation and other intentional acts or torts are usually not dischargeable in bankruptcy. So although Freeman and Moss have to get in line with any other unsecured creditors, they'll still be able to try to collect after Giuliani comes out of bankruptcy," former federal prosecutor Neama Rahmani told Newsweek.
Rahmani noted that the Department of Justice's Office of the Trustee is "also good at going after and setting aside any fraudulent transfers to avoid payment."
"If Giuliani tries anything to hide his assets, he'll get into more criminal trouble," Rahmani said.
"Jury has awarded $148 million to Shaye Moss and Ruby Freeman against Rudy Giuliani for defaming them. Judgments for intentional torts are not dischargeable in bankruptcy," wrote former federal prosecutor Barb McQuade in a December 15 post to X, formerly Twitter.
Update 12/21/23, 2:42 p.m. ET: This article was updated with comment from Neama Rahmani.
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About the writer
Andrew Stanton is a Newsweek weekend reporter based in Maine. His role is reporting on U.S. politics and social issues. ... Read more
