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Judge Leaning Towards Dismissing Rudy Giuliani's Bankruptcy Case

Former New York Mayor Rudy Giuliani talks to reporters as he leaves the federal courthouse in Washington, Dec. 11, 2023. A judge said Wednesday, July 10, 2024, he was leaning toward throwing ou

A judge indicated on Wednesday that he is inclined to throw out Rudy Giuliani's bankruptcy case following an agreement between the former New York City mayor and his major creditors. The creditors, two ex-Georgia election workers who won a $148 million defamation judgment against Giuliani, believe that dismissal is the best course of action.

The case has been marred by allegations of Giuliani flouting bankruptcy laws and potentially concealing assets. If the case is dismissed, it would halt Giuliani's pursuit of bankruptcy protection but would not absolve him of his debts. Creditors could explore other legal avenues to recover some of the owed money, such as seizing his properties and assets through a court order.

U.S. Bankruptcy Judge Sean Lane expressed his inclination towards dismissal during a status hearing in White Plains, New York. He ruled out converting the case to a liquidation, as requested by Giuliani, deeming it not in the best interest of his creditors.

Giuliani's lawyer mentioned that a dismissal would enable him to appeal the defamation case stemming from his involvement in challenging Donald Trump's 2020 election loss. On the other hand, the former election workers' lawyer accused Giuliani of using the bankruptcy process as a 'bad-faith litigation tactic.'

Giuliani filed for Chapter 11 bankruptcy reorganization in December after the defamation judgment was awarded to the ex-Georgia election workers. The ongoing legal battles add to Giuliani's troubles, including being disbarred in New York and facing potential disbarment in Washington.

Financial disclosures from Giuliani's bankruptcy filings reveal significant debts and dwindling assets. His recent financial statements show limited cash reserves and reduced retirement savings, indicating a challenging financial situation.

If the bankruptcy case is dismissed, the creditors could pursue their claims through other legal channels, potentially avoiding additional bankruptcy-related expenses. The judge also mentioned a 12-month ban on Giuliani filing for bankruptcy protection in the event of dismissal.

Giuliani's legal entanglements extend beyond the bankruptcy case, with criminal charges in Georgia and Arizona related to his efforts to overturn the 2020 election results. The outcome of these legal battles will significantly impact Giuliani's financial and professional future.

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