During a bankruptcy hearing on Wednesday, Rudy Giuliani interrupted to protest claims that he might commit bankruptcy crimes by hiding his assets, calling such suggestions “defamatory.”
The disruption occurred as Rachel Strickland, an attorney for two Georgia election workers Giuliani defamed and owes $148 million, argued for dismissing the bankruptcy case to allow other courts to handle the claims. Strickland warned that keeping the case in bankruptcy court could lead to Giuliani hiding his assets and facing bankruptcy charges.
Giuliani, who joined the hearing by phone, asked for a break to address Strickland’s remarks. His attorney, Gary Fischoff, assured the court that Giuliani would not commit bankruptcy fraud.
Judge Sean H. Lane indicated he might dismiss the bankruptcy case due to issues with transparency. Dismissing the case would allow appeals in the $148 million defamation judgment to proceed. The judge noted that a Chapter 11 trustee could liquidate Giuliani’s significant assets but that other assets tied to his personal brand would be harder to manage.
Despite objections from other creditors, Strickland emphasized her clients’ priority in the case. The judge planned to issue an order by Friday and asked for arrangements to pay a third-party vendor managing Giuliani’s records.
If dismissed, Giuliani would not be able to file for bankruptcy again for a year, giving time for appeals. His other legal troubles include civil cases, potential loss of his law license, and criminal indictments related to efforts to overturn the 2020 election results.
