Rudy Giuliani, the former personal lawyer for former U.S. President Donald Trump, arrives to the E. Barrett Prettyman U.S. District Courthouse on December 15, 2023 in Washington, DC.
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Rudy Giuliani filed for Chapter 11 bankruptcy protection in New York on Thursday, citing debts that include a nearly $150 million recent civil judgment against him for defaming Georgia election workers while serving as a lawyer for former President Donald Trump.
The filing by Giuliani came a day after a federal judge in Washington, D.C., ordered the former New York City mayor to begin paying the two election workers the damages he owed for their lawsuit and three days after the women filed a new suit seeking to bar him from defaming them again.
The filing in U.S. Bankruptcy Court in Manhattan estimates he has assets worth between $1 million and $10 million, and estimated liabilities of between $100 million and $500 million. Chapter 11 of the Bankruptcy Code is used by filers to reorganize their debts and come up with a plan to pay their creditors.
He is on the hook for $146 million to Ruby Freeman and her daughter Shaye Moss as a result of a jury verdict last week in D.C. federal court. Giuliani in the filing said he has a total of between one to 49 creditors.
Giuliani, while representing Trump in efforts to reverse his loss on the heels of the 2020 election, had falsely accused those two election workers of ballot fraud.
He also was sued in September by his former lawyer Robert Costello for $1.36 million in unpaid legal fees dating back to late 2019.
Giuliani’s bankruptcy lawyers in a statement Thursday, said, “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” from the defamation case, the attorneys, Heath Berger and Gary Fischoff said.
“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 lawyers said.
In addition to serving two terms as New York mayor, Giuliani is a former Department of Justice official and former Manhattan U.S. Attorney.
Giuliani was in the final months of his mayoralty on Sept. 11, 2001, when a terror attack leveled the Twin Towers of the World Trade Center in lower Manhattan.
After being widely lauded for his leadership of the city on the heels of that attack, he made millions of dollars from consulting work and made a failed bid for the White House in 2008.
In reference years, Giuliani has been criticized, sued and prosecuted for his work as Trump’s lawyer, where he has since late 2020 made false claims that Trump lost to President Joe Biden only as a result of widespread ballot fraud.
– Additional reporting by CNBC’s Jim Forkin
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