Giuliani was ordered to pay $148 million to Georgia election workers he defamed—a death knell for his already-strapped finances.
Topline
Rudy Giuliani filed for bankruptcy Thursday, days after he was ordered to pay more than $148 million in damages to Georgia election workers he defamed by spreading a conspiracy theory linking them to election fraud—which proved to be a death knell for the ex-mayor’s already strapped finances.Key Facts
Giuliani filed for Chapter 11 bankruptcy in New York on Thursday, according to court filings, reporting he has between $1 million and $10 million in estimated assets and approximately $153 million in liabilities.
The jury at his defamation trial ordered Giuliani to pay more than $148 million in response to a lawsuit brought by Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss, after he spread a false conspiracy theory linking the women to fraud in the 2020 election, which capped off a series of financial issues the attorney and his counsel have reported in recent months as payments Giuliani owes ballooned amid a slew of legal issues.
Giuliani earns approximately $400,000 annually from his radio show, the New York Times reported in August based on an anonymous source, along with some income from his podcast and a livestream podcast—which the Times notes is “nowhere near enough to cover his debts”—and the attorney put his Upper East Side apartment on the market for $6.5 million, which real estate listings suggest has not yet sold and is now going for $6.1 million.
In addition to the damages he now owes the Georgia election workers, U.S. District Judge Beryl Howell has separately ordered Giuliani to pay more than $130,000 in attorneys fees in the case, after he failed to turn over evidence, and Giuliani was sued by his former attorney, Robert Costello, over his alleged failure to pay nearly $1.4 million in legal bills.
Giuliani had his electronics seized by federal investigators for a separate (now closed) probe in April 2021, which he said resulted in him having to pay high fees to the vendor, Trustpoint, that’s hosting the data from his seized devices; his lawyers said in August that Giuliani has “limited financial resources” and “cannot afford to pay” Trustpoint’s $15,000 to $23,000 fees to turn over evidence in voting company Smartmatic’s separate defamation case against him.
Giuliani’s bankruptcy filing also came after the Internal Revenue Service put a lien on his property in Palm Beach, Florida, in response to unpaid taxes; his consulting firm Giuliani Partners LLC defaulted on a debt for a phone bill and was ordered to pay $57,655 in late July; and Giuliani was held in contempt last year for failing to make payments to his ex-wife. Crucial Quote
Giuliani’s attorney, Joe Sibley, said in opening arguments at the Georgia defamation trial last week that imposing hefty damages against his client would amount to the “civil equivalent of the death penalty,” foreshadowing Giuliani’s Chapter 11 filing.
