Rudy Giuliani abruptly agreed to withdraw his bankruptcy case just moments before the hearing Wednesday, Law&Crime reported.
Giuliani’s bankruptcy proceedings took a turn during a Wednesday hearing, leading to a decision to dismiss his Chapter 11 bankruptcy reorganization case. Initially, Giuliani sought to convert the case to Chapter 7, which involves liquidating assets to pay creditors, but he ultimately opted to agree with the demands of the Georgia election workers he defamed to dismiss the case altogether, according to Law&Crime.
In yet another about-face, Rudy Giuliani suddenly agrees to throw out bankruptcy case just before hearing https://t.co/4coC2eMfiO
— Law & Crime (@lawcrimenews) July 10, 2024
Ruby Freeman, an election worker who was defamed, had her attorney ask the court to dismiss Giuliani’s bankruptcy case with prejudice. This would prevent Giuliani from refiling the case, effectively forcing him to settle the $148 million defamation liability previously determined by the courts, the outlet stated. (RELATED: Former Mayor’s Grinning Mugshot Released)
“The Debtor now requests that the Court grant the relief requested by the Freeman Plaintiffs and dismiss the case,” the filing said. “Alternatively, the Debtor requests that the chapter 11 case be converted to chapter 7. The Committee [of Unsecured Creditors] has not agreed to the dismissal of the chapter 11 case.”
The hearing saw significant contention, especially from the Official Committee of Unsecured Creditors, which opposed dismissing the Chapter 11 case. This group of creditors likely favored a reorganization approach to secure a more structured settlement of Giuliani’s debts, Law&Crime stated.
The judge’s leaning towards dismissing the case reflects the complexity and high stakes involved, especially considering Giuliani’s significant financial and legal challenges, according to Law&Crime.
