MANHATTAN (CN) — A federal bankruptcy court judge on Friday tossed Rudy Giuliani’s Chapter 11 case, paving the way for two Georgia election workers Giuliani defamed to collect their $148 million judgment against him.
U.S. Bankruptcy Judge Sean Lane wrote Friday that dropping the case and putting a one-year ban on refiling is “in the best interest of creditors.” In his 22-page ruling, Lane panned Giuliani for his “troubling” trend of submitting incomplete financial reports to the court.
“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case,” Lane said.
The judge added that getting an accurate peek into Giuliani’s finances has proven to be an “elusive goal” throughout the six-month proceedings.
“The debtor has not even retained an accountant, which is the most rudimentary of steps,” Lane wrote.
Lane indicated at a hearing this week that he was leaning toward dismissal. He was slated to return to the bench on Friday for a final ruling in open court, but canceled the appearance in favor of his written order.
His ruling will allow Ruby Freeman and Shaye Moss, the mother-daughter pair of Georgia election workers who won a defamation suit against Giuliani last year, to pursue that award. The bankruptcy previously kept the duo from collecting their judgment and froze other lawsuits Giuliani faces. Those proceedings can be resumed now that they’ve been lifted.
A federal judge in Washington D.C. ruled that Giuliani falsely accused them of mishandling ballots to steal the 2020 election for President Joe Biden, claims parroted by his longtime ally and former client Donald Trump.
Giuliani was ordered to pay the $148 million to Freeman and Moss, who said they were subjected to a relentless wave of hateful, violent and racist harassment by Trump supporters.
The former New York City mayor filed for bankruptcy in late 2023, citing nearly $153 million in liabilities that included the trial judgment, unpaid taxes and legal fees.
His creditors, which included Freeman, Moss, Hunter Biden and a woman who sued Giuliani for sexual assault, among others, repeatedly denounced the bankruptcy as a delay tactic. They chided him for spending cash throughout the proceedings on trifling personal buys like “deep bronze” tanning lotion, and accused him of being liable for bankruptcy crimes.
Giuliani long rebuked these claims and fought dismissal until this week, when he consented to his suit being tossed to avoid the appointment of a bankruptcy trustee who would oversee his finances.
With the bankruptcy dismissed, the floodgates are open for Giuliani’s creditors, who can now collect legal winnings from the man once dubbed “America’s Mayor.” Hunter Biden can resume his suit accusing Giuliani of hacking his personal devices. His former assistant Noelle Dunphy can continue her sexual harassment and abuse case against Giuliani, too.
Voting tech company Smartmatic USA will likely have Giuliani back in its crosshairs as well — it can now resume seeking damages from Giuliani in a $2.7 billion defamation lawsuit over his claims of a rigged 2020 election.
Giuliani’s net worth is a fraction of the $153 million he already owes, however. His bankruptcy filing estimates his wealth to fall between $1,00,001 and $10 million.
A spokesperson for Giuliani didn’t immediately respond to requests for comment.