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Rudy Giuliani talks to reporters before the Republican National Convention, on July 16, 2024, in Milwaukee. (AP Photo/Paul Sancya).
Rudy Giuliani’s bankruptcy case was officially dismissed after his lawyers agreed to end the case.
In a ruling made by U.S. Bankruptcy Judge Sean Lane, Rudy Giuliani has been mandated to deposit $100,000 into an escrow account to help cover a portion of the anticipated professional fees of Global Data Risk. This firm, a forensic financial investigator, was hired by the Official Committee of Unsecured Creditors to scrutinize the assets of the former New York City mayor during the bankruptcy proceedings.
The order also prohibited Giuliani from seeking bankruptcy protection again for “one year from the dismissal effective date,” the order said.
Under the terms set forth, Giuliani will be required to divest either his valuable Upper East Side apartment in New York or his condominium in Florida. This decision stems from an agreement that grants Global Data Risk certain rights regarding these properties. Specifically, the firm will possess security interests and liens on the assets to settle the remaining fees, with priority given to the first property sold—although there is a specified timeframe involved.
For a period of six months after the court order, Global Data Risk is prohibited from initiating any foreclosure actions or enforcing its rights against the New York City apartment or the Florida condominium. The sole allowance during this time frame is for the firm to receive the sale proceeds to address a specified professional fee amount. However, once this temporary restriction is lifted, Global Data Risk is authorized to pursue foreclosure and enforce its rights against these properties until all fees and expenses owed to the firm are completely satisfied.
Giuliani will have to keep the properties “in good condition, at least comparable to their current condition,” and have “casualty insurance […] in an amount not less than the full replacement value of the Debtor’s interest in each property,” the agreement added.
The agreement comes two weeks after the judge in the case angrily demanded answers about the former NYC mayor’s cash assets and threatened to put him in the witness box “under oath” so he could get those answers and effectuate dismissal.
“There are a lot of things that can happen that your client does not want to happen,” Lane told Giuliani’s lawyers in court on July 17.
Giuliani filed the case in the U.S. Bankruptcy Court for the Southern District of New York following the $148 million defamation judgment awarded to Ruby Freeman and Shaye Moss in December.
