Giuliani’s bankruptcy case has hit a roadblock as little progress has been made in sorting out his finances. The former New York City mayor declared bankruptcy in December after being ordered to pay a $148 million defamation judgment to two former election workers. Despite missing deadlines to file financial disclosure reports and failing to sell his residences in New York and Florida, Giuliani’s attorneys claim he has additional work lined up to bring in money. However, creditors’ lawyers argued that lifting the legal barrier preventing Giuliani from appealing the defamation judgment would delay the bankruptcy proceeding.
Last week, Giuliani was suspended from his daily show on WABC Radio for repeatedly discussing discredited 2020 election claims. His attorney, Heath Berger, stated that necessary financial filings will be made and Giuliani’s Manhattan apartment could soon be liquidated to address his financial obligations. Despite the assurances from his lawyers, the judge overseeing the case, Sean Lane, expressed his concerns about the lack of progress in the case. Lane rejected Giuliani’s request to lift the automatic stay, preventing him from pursuing post-judgment litigation in the defamation case.
In response to a request from lawyers representing the election workers, Lane considered barring Giuliani from making additional defamatory statements against them. While no decision has been made on the matter, Lane emphasized that the court would not tolerate parties flouting the law. He instructed Giuliani’s lawyers to advise their client to stop making any defamatory statements against the election workers. The judge plans to further discuss this issue with the lawyers involved in the case during a meeting on Thursday.
Rachel Strickland, an attorney representing the election workers, criticized Giuliani for his lack of progress in settling his financial obligations. She accused him of deliberately flouting his employer’s restrictions at WABC Radio, leading to his suspension from the show. Despite the challenges faced by Giuliani in his bankruptcy case, his lawyers remain optimistic that the issues will be resolved and necessary financial filings will be completed. The future of Giuliani’s Manhattan apartment and his potential sources of income to repay his debts are some of the key issues that need to be addressed as the case moves forward.
The judge’s decision to uphold the legal barrier preventing Giuliani from appealing the $148 million defamation judgment highlights the complexities of the case and the concerns of creditors about potential delays in the bankruptcy proceeding. While Giuliani’s attorneys have indicated that progress has been made in addressing his financial obligations, the judge’s remarks suggest that more needs to be done to move the case forward. As the legal battle continues, the implications of Giuliani’s bankruptcy case on his reputation and financial future remain uncertain. The upcoming meeting between the lawyers and the judge will likely shed more light on the next steps in resolving this high-profile bankruptcy case.
