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Former Mayor of New York Rudy Giuliani leaves the federal courthouse in Washington, Monday, Dec. 11, 2023. The trial will determine how much Rudy Giuliani will have to pay two Georgia election workers who he falsely accused of fraud while pushing President Donald Trump

Former Mayor of New York, Rudy Giuliani, leaves the federal courthouse in Washington on Monday, Dec. 11, 2023. (AP Photo/Jose Luis Magana)

Rudy Giuliani cannot use the bankruptcy process to avoid paying the $148 million defamation verdict won by former Georgia election workers Ruby Freeman and Wandrea’ ArShaye “Shaye” Moss, a lawsuit filed in federal court on their behalf this week claims.

On Friday, New York City-based bankruptcy restructuring-focused attorney Rachel C. Strickland filed an adversary case to determine dischargeability of debt in the Southern District of New York Bankruptcy Court. The complaint is technically separate from, but intrinsically related to, Giuliani’s preexisting case on the docket there.

In the aftermath of Donald Trump’s 2020 election loss, Giuliani spread false allegations against Freeman and Moss — saying the pair engaged in fraud and had “cheated” Peach State voters. A defamation lawsuit ensued, and a default judgment was issued in their favor after Giuliani essentially ignored the lawsuit and engaged in what the court termed a “willful shirking of his discovery obligations.” A trial was held to determine compensatory and punitive damages. Jurors issued their verdict, and the court entered a final judgment order on Dec. 18.

Giuliani filed for bankruptcy three days later.

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