Dem
51
GOP
49
After a jury ordered Rudy Giuliani to pay two Georgia election workers $148 million for defaming them, he declared bankruptcy to suspend collection efforts. The election workers and other creditors have had enough of Giuliani's stalling and failure to file required paperwork on time.
Giuliani had good legal advice, despite being sued by his previous lawyers for nonpayment. He filed for bankruptcy under Chapter 11, rather than the usual Chapter 7. Under Chapter 11 rules, he was able to retain control of his assets until now.
In a scorching 55-page motion, the creditors have asked Judge Sean Lane to appoint a trustee to take over Giuliani's assets. He or she could sell assets and prevent them from being diverted to companies Giuliani controls. Giuliani has said his assets are worth $10.6 million in total. They include homes in New York and Florida, a Mercedes-Benz automobile, two IRAs and three New York Yankees World Series rings. He may also have hidden some assets, and a trustee would have the power to investigate that.
Giuliani's spending is also out of control. He has spent thousands of dollars to cover the costs of his businesses. He has also paid the credit card bill of one of his employees, Maria Ryan, who is his reported girlfriend (although it is hard to imagine what any woman could see in him). The committee of creditors suggested that Giuliani get a job so he can start earning some money to pay off his debts. His lawyers shot back: "Maybe the committee also has a suggestion on who would employ an 80-year-old disbarred attorney." There is no timeline the judge has to follow. He could make his decision next week or take his time. (V)