ATLANTA — A federal judge has thrown out former New York City Mayor Rudy Giuliani’s bankruptcy case, saying it’s in the best interest of creditors.
The decision exposes Giuliani to lawsuits, foreclosures and other measures creditors, including two defamed Fulton County election workers, have started to collect what they’re owed.
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.
A lawyer for Freeman and Moss, accused Giuliani of using the bankruptcy process as a “bad-faith litigation tactic” and said, “he regards this court as a pause button on his woes while he continues to live his life unbothered by creditors.”
Dismissing the case will also allow the ex-mayor to pursue an appeal in the defamation case, which arose from his efforts to overturn Donald Trump’s 2020 election loss.
U.S. Bankruptcy Judge Sean Lane said evidence in the case showed that Giuliani had failed to meet obligations of financial transparency required of a debtor and that dismissing the bankruptcy was in the best interests of people to whom the ex-mayor owes money.
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“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case,” Lane wrote in a 22-page decision.
The judge said that most debtors will seek to remedy such problems when alerted to them, but, “By contrast, Mr. Giuliani has done nothing.”
A message seeking comment was left with Giuliani’s lawyer and spokesperson.
Giuliani’s other creditors had wanted to keep the bankruptcy case going with a court-appointed trustee taking control of Giuliani’s assets.
The dismissal includes a 12-month ban on Giuliani filing again for bankruptcy protection.
Freeman and Moss said Giuliani’s targeting of them because of Trump’s lies about the 2020 election being stolen led to death threats that made them fear for their lives. The filing froze collection of the debt.
The Associated Press contributed to this article.
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