ATLANTA — Creditors are firing back at former New York Mayor Rudy Giuliani, saying he regarded the bankruptcy case against him as “a joke.”
Giuliani filed bankruptcy after a jury awarded Fulton County election workers Ruby Freeman and Shay Moss $148 million after they said he continued to spread lies about them tampering with votes from the 2020 election.
Last week, Giuliani filed to have his bankruptcy case changed from Chapter 11 to Chapter 7. That would allow him to sell off his assets to pay for his debt but he would not have to provide creditors with a repayment plan.
On Monday, the Creditors Committee, which is overseeing the money owed to Moss and Freeman, filed an objection to converting the case, saying, “Giuliani has treated this Court, the bankruptcy process, and the Committee the same way he treated the D.C. District Court and the Freeman Plaintiffs in the Freeman Litigation, with utter disrespect and without accountability. Giuliani is playing the delay game.”
“Giuliani’s goal is to continue to avoid responsibility for his malfeasance with the hope that a Chapter 7 trustee will not act with the same resolve as the Committee to hold Giuliani accountable for his conduct. In short, by the Conversion Application, Giuliani is trying to use a one-pager to bring about further delay by purporting to initiate a fundamental change in the trajectory of this case and to the parties involved therein,” the document went on to say.
The creditors in this case have already expressed their frustration with Guiliani after months of trying to get complete information on his finances.
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The creditors have also asked that a trustee be named to oversee Giuliani’s finances.
In the filing, the creditors said the way that Giuliani had treated this case, they were not shocked that he was recently disbarred from practicing law.
“Given Giuliani’s disgraceful behavior in this bankruptcy case, preceded by his disgraceful behavior in the Freeman Litigation, it comes as no surprise that Giuliani was recently disbarred in New York. The New York Supreme Court’s decision on Giuliani’s disbarment just as easily could have been written about Giuliani and this bankruptcy case. This chicanery is what he does and who he is,” the document said.
The attorneys for Freeman and Moss have also filed their own objection to converting the case, saying, “By now, the Court is familiar with the examples of Mr. Giuliani’s bad faith conduct towards his creditors.”
“The best explanation for this sudden about-face is litigation gamesmanship. Successfully converting this case would result in the dissolution of the Committee, end the Committee’s growing investigation into Mr. Giuliani’s assets, and the related near-term threat of discovery sanctions,” the filing said. “Conversion would merely reward atrocious behavior.”
The court is set to hear arguments over the request to change the bankruptcy on July 10.
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