Former New York Mayor Rudy Giuliani has filed for chapter 11 bankruptcy just days after he was ordered to pay $148 million in damages to two Georgia election workers.
Driving the news: Giuliani’s bankruptcy filing states that he has between $100 million and $500 million in liabilities and $1 million to $10 million in assets.
- The bankruptcy filing will allow Giuliani to appeal the $148 million penalty and ensure fair treatment of other creditors, a Giuliani spokesperson told Reuters.
- While bankruptcy filings allow people to wipe away their debts, judges have previously ruled that defamation penalties cannot be discharged if a debtor engaged in “willful and malicious” conduct.
- Giuliani listed Hunter Biden and a former employee as creditors, both of whom have sued him for different reasons.
- Giuliani also owes nearly $1 million to the US and New York state governments and nearly $2 million in legal fees.
- Bankruptcy proceedings will likely pause all pending lawsuits against Giuliani.
- Giuliani is facing criminal charges in Georgia related to election subversion, along with former President Donald Trump and other co-defendants.
What they’re saying: “No person could have reasonably believed that Mayor Rudy Giuliani would be able to pay such a high punitive amount,” spokesperson Ted Goodman told Reuters.