Rudy Giuliani’s Legal Woes: Disbarment & Bankruptcy
It is safe to say we have all had bad weeks, but the former New York mayor, Rudy Giuliani, takes it to the next level as he deals with a disbarment and Chapter 11 bankruptcy
MANCHESTER, NEW HAMPSHIRE – JANUARY 21: Rudy Giuliani speaks to members of the media where Republican candidate Florida Gov. Ron DeSantis was scheduled to host a campaign event on January 21, 2024 in Manchester, New Hampshire. Gov. DeSantis has suspended his presidential campaign and is endorsing Republican candidate, former President Donald Trump. (Photo by Brandon Bell/Getty Images).
Key Points:
- “America’s Mayor,” Rudy Giuliani was officially disbarred from practicing law by the state of New York.
- Giuliani filed for Chapter 11 bankruptcy after losing a defamation lawsuit filed by Georgia poll election workers Ruby Freeman and Shay Moss.
- The judgment against Giuliani was $148 million.
- Giuliani now seeks to convert his bankruptcy to Chapter 7.
- Alex Jones from InfoWars also is seeking to convert from Chapter 11 to Chapter 7 due the lawsuit won by the Sandy Hook Elementary School Shooting.
Rudy Giuliani Disbarred from the Practice of Law
On July 2, 2024, the state of New York officially disbarred Rudy Giuliani, meaning he cannot practice law. You can read the full ruling from the Supreme Court of New York Appellate Division First Judicial Department via this link.
As an attorney for twenty-four years, I can tell you that losing our license is our biggest embarrassment and fear as lawyers.
Sometimes we win cases, sometimes we lose. Sometimes, issues with cases become part of courthouse gossip or lore. For example, the yelling match between me and a family court judge now deceased. But none of that is as embarrassing as losing a state bar license we worked so hard to get.
Attorneys are always fearful of losing their state bar license. If an attorney meets with some friends at a bar (no pun intended, but this profession will drive you to drink) and leaves after two drinks, I guarantee you that at some point, they hope they don’t get pulled over, fearful of a DUI charge that will result in losing their license.
Some states, like Florida, are unfair during the disbarment process. For example, if a lawyer gets arrested, the Florida Bar will disbar that attorney pending the results of the criminal case.
So what happens if the charges get dropped or the lawyer is acquitted? They get their license back, but not having a license for months or years until the case is settled doesn’t help one’s bank accounts. There are bills to be paid! For that reason, lawyers file appeals immediately to delay the process.
Years ago, when selling my practice, I emailed licensed attorneys in Florida to see who was interested. Besides the first clown lawyer who forwarded my email to the Florida Bar, making all sorts of ridiculous demands, clown lawyer #2 filed a bar complaint, saying what I was doing was unethical and illegal. Clown lawyer #1 was “demanding” who else received that email to file a class action lawsuit.
Was I concerned about losing my license to practice law? I knew the law was on my side, and six months later, the bar’s response seemed like a carbon copy of my response to their inquiry. What a waste of everyone’s time, and for the record, I don’t wish clown lawyer #2 bad, but I sure as hell don’t wish him well! F### that guy! And clown lawyer #1 as well!
Rudy Giuliani’s Chapter 11 Bankruptcy
Giuliani had filed for bankruptcy because he lost a defamation lawsuit filed by two Georgia poll election workers, Ruby Freeman and Shay Moss. The mother-daughter duo’s heart-breaking testimony before the House Select Committee on January 6 (January 6 Committee) gave the country an inside view of how Giuliani’s lies destroyed their lives.
Freeman and Moss got a judgment against Giuliani for $148 million, resulting in Giuliani filing for Chapter 11 bankruptcy.
Now, to avoid the spread of disinformation, especially from Giuliani, let’s be clear on the facts, which are easily verifiable. Regardless of what Giuliani says about the defamation lawsuit, he stipulated that his acts were “intentional, malicious, wanton, and willful, such that Plaintiffs are entitled to punitive damages.”
So, Giuliani did not contest the defamation lawsuit filed by Freeman and Moss. Quite the opposite, he agreed! So, the only issue for the court was deciding on the damages or how much Freeman and Moss should be compensated.
Rudy Giuliani Seeks to Convert to Chapter 7 Bankruptcy
Giuliani, taking a page from Alex Jones from InfoWars, which is facing shutdown, filed a Chapter 11 bankruptcy because of a $1.5 billion judgment from the victims of the Sandy Hook Elementary School Shooting.
Jones, for years, has been declaring that the shooting at Sandy Hook Elementary never took place and that the victims are “crisis actors.” I hear you; it’s absurd, but not as absurd as his followers believing this garbage. Of course, on the witness stand, Jones admitted he lied. That’s also easily verifiable for any conspiracy theorist that doesn’t believe me. I bet clown lawyers #1 and #2 also believe that.
Chapter 7 Bankruptcy
So now that Giuliani is seeking to convert from Chapter 11 to Chapter 7 bankruptcy, his nonexempt assets will be liquidated to pay off creditors.
Moss and Freeman are considered creditors, but there’s a catch. What remains to be ruled upon is if that judgment can be wiped out in bankruptcy. Remember, not all debts can be wiped out in bankruptcy!
Considering Giuliani stipulated that his acts were “intentional, malicious, wanton, and willful,” the court should rule that the judgment is non-dischargeable. This means that Freeman and Moss can continue to seek collecting from Giuliani.
Why Did Rudy Giuliani File to Convert from Chapter 11 to Chapter 7 Bankruptcy?
The creditor’s committee has accused Giuliani in his Chapter 11 bankruptcy of not complying with his obligations by failing to provide the required documentation. Note that Chapter 11 bankruptcy differs from Chapter 7 and Chapter 13, where a trustee is automatically appointed.
With Chapter 11, the creditor’s committee, comprised of unsecured creditors, is there to ensure they receive their fair share. However, the creditor’s committee requested that a bankruptcy trustee be appointed to oversee Giuliani’s case.
The creditor’s committee has accused Giuliani of hiding assets and paying his girlfriend’s daughter’s credit card. This is off-topic here, but a pet peeve of mine is the term “boyfriend” or “girlfriend” when you reach a certain age. Giuliani is eighty years old. It just seems like a silly term to use. High school was a long time ago. Let’s get back on point!
But, by converting from Chapter 11 to Chapter 7 bankruptcy, a trustee will still be appointed to look into Giuliani’s assets, and whatever assets are exempt or protected, Giuliani keeps. Any nonexempt assets are liquidated.
Giuliani claims he is a Florida resident. That way, he can keep his Palm Beach condo. I think it’s fair to say we all know Giuliani is a resident of New York. His New York condo is listed for sale, and the net proceeds will be used to repay creditors.
Since I consider Giuliani the story that keeps giving, any updates, I’ll make sure to post.
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Please note the information on this site does not constitute legal advice and should be considered for informational purposes only.
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