Rudy Giuliani's Bankruptcy Hearing Devolves Into Chaos
The judge will rule on July 12th- Aaron Parnas
- 31 minutes ago
This morning, Rudy Giuliani's bankruptcy hearing went from a normal hearing into chaos with Giuliani's creditors raising the possibility of throwing "America's Mayor" into prison. After Giuliani filed for bankruptcy, Giuliani and two of his creditors submitted three competing proposals concerning how to adjudicate the proceeding. Initially, Giuliani filed for Chapter 11 bankruptcy, but just one hour before the start of this morning's hearing, he decided to ask the court to dismiss the proceeding, or in the alternative, to switch his petition to a Chapter 7 filing.
At the hearing, Giuliani made remarks to the judge, and the attorney for Georgia poll workers, Shaye Freeman and Ruby Moss, two of Giuliani's creditors, spoke as well. Freeman and Moss currently hold a $148 million judgement against Giuliani after he was found liable for spreading defamatory remarks about the Georgia poll workers.
While speaking with the judge, Freeman and Moss' attorney brought up throwing Giuliani in prison, stating: "Unless your honor wants to entertain putting America's mayor in prison... I suggest you throw the case out, your honor." In response, Giuliani called the attorney's remarks "defamatory."
As it currently stands, Freeman, Moss, and Giuliani all want the bankruptcy petition dismissed because they assert that the petition will lead to a majority of his estate going to professional fees. A dismissal would allow Freeman and Moss to go after Giuliani's assets outside of the bankruptcy proceeding. Meanwhile, the Official Creditors Committee asked the court to continue the petition and appoint a Chapter 11 trustee.
At the end of the hearing, Judge Sean Lane noted that he was leaning toward dismissal stating: "I'm leaning toward dismissal, frankly, because I am concerned that the past is prologue." Judge Lane will rule on the issue on July 12th.
