Creditors say Rudy Giuliani treating bankruptcy ‘as a joke’

As Rudy Giuliani’s bankruptcy hearing is set for Wednesday, creditors are warning he isn’t taking bankruptcy seriously.

In December, Giuliani filed for Chapter 11 bankruptcy after two Georgia election workers were awarded a $148 million defamation judgment after Giuliani spread a false conspiracy theory the pair were involved with election fraud related to the 2020 election. Now, creditors say he is treating it “as a joke.”

“Since day one, Giuliani has regarded this case and the bankruptcy process as a joke, hiding behind the facade of an elderly, doddering man,” a committee of creditors wrote in court documents filed Monday.

U.S. Bankruptcy Judge Sean Lane is set to address three different proposals from Giuliani and his creditors, who say Giuliani’s proceedings with Chapter 11 bankruptcy are being used as a delay tactic so Giuliani can hang on to his money a bit longer.

Creditors have accused Giuliani of excessive spending, hiding his assets, and stalling progress. They are asking the judge to consider sanctions against Giuliani and appoint an independent trustee to take control in the first proposal.

The Georgia election workers want his bankruptcy claims thrown out entirely in the second proposal Lane will hear.

“Rudolph Giuliani’s bad faith now warrants dismissal of this case. For over six months, the Freeman Plaintiffs have waited patiently as Mr. Giuliani has abused the chapter 11 process by pursuing a self-serving, delay-oriented strategy,” Rachel Strickland, their attorney, wrote in court filings Monday.

The third proposal comes from Giuliani, who wants to convert to Chapter 7 bankruptcy. Moving from Chapter 11 bankruptcy to Chapter 7 would allow Giuliani to liquidate his assets and effectively strip him of control of his finances.

The motion provided no explanation for the request.

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“I can promise you this. No matter what they do, they can’t take away Mayor Giuliani’s most important assets — integrity, courage, and love for America,” said Ted Goodman, Giuliani’s spokesman.

The former federal prosecutor-turned-mayor of New York City-turned-Trump attorney has been involved with a series of entanglements in recent months. He’s been indicted in Arizona and Georgia for his role in trying to overturn the election in 2020 and was most recently disbarred in the state of New York.