Judge tosses Giuliani's bankruptcy case

A New York judge on Friday dismissed former New York City Mayor Rudy Giuliani's bankruptcy case, which now allows other civil cases against the former attorney to move forward, and will pave the way for two Georgia election workers’ to collect their $148 million defamation judgment.

Giuliani was ordered to pay the $148 million defamation verdict to election workers Ruby Freeman and Shaye Moss in December, after falsely claiming they participated in election fraud during the 2020 election. But he filed for bankruptcy one week later, which froze the case.

U.S. Bankruptcy Judge Sean Lane previously warned Giuliani and his attorneys that he was "disturbed" about the progress of the case, after the disbarred New York attorney missed key financial disclosure deadlines. He has also not been able to sell his Florida or New York residences. 

"The record in this case reflects Mr. Giuliani’s continued failure to meet his reporting obligations and provide the financial transparency required of a debtor in possession," Lane wrote in his 22-page decision. "Forcing creditors to wait years while they are prevented from pursuing their rights for, at best, a modest distribution seems inequitable and ill-advised."

Giuliani previously fought against dismissing the case, claiming he still intended to create a reorganization plan. However, he consented to the dismissal earlier this week, after the judge kept denying his attempts to appeal the defamation verdict, according to The Hill.

The ruling means Freeman and Moss can now attempt to collect their reward, but it will likely be far less than the $148 million judgment. If the duo is able to collect the reward, it could limit financial compensation for other creditors who have outstanding court cases against Giuliani that are in earlier phases.

Misty Severi is an evening news reporter for Just the News. You can follow her on X for more coverage.