Topline
The Official Committee of Unsecured Creditors filed a motion in bankruptcy court on Friday to compel Rudy Giuliani to sell his $3.5 million Florida condo to pay off part of his debts, which became significantly larger after the former New York City mayor was ordered to pay more than $148 million to two election workers he defamed, resulting in him filing for bankruptcy last year.
Key Facts
The committee said Giuliani has acknowledged his limited assets and told his counsel “there’s no pot of gold at the end of the rainbow.”
The filing said the sale of the Palm Beach condo would be available to satisfy the claims of Giuliani’s creditors, adding that since the home is a non-exempt asset, Giuliani can’t keep it and has “no credible argument that he is entitled to live there” following his bankruptcy.
Giuliani hasn’t shown any motivation to “list, market or otherwise take steps to sell the Florida Condo,” according to the filing, which noted he incurs tens of thousands of dollars of maintenance fees for the home every month.
Giuliani spends most of his time in New York, the filing said, citing a statement from the former mayor in which he shared that he spends approximately 20% to 30% of his time in Florida.
Creditors are also asking the court to compel Giuliani to get homeowners insurance for his Florida condo and New York City apartment, saying that his failure to maintain such insurance puts the former estate at risk.
Creditors criticized Giuliani’s inability to maintain homeowners insurance, citing data from his January monthly operating report that shows he’s making credit card payments worth tens of thousands of dollars and paying for “numerous Uber rides” and entertainment such as Netflix, Prime Video, Kindle and Paramount+.
A representative for Giuliani didn’t immediately respond to Forbes’ request for comment.
What To Watch For
A hearing to consider the motion is scheduled for April 4 in New York.
Big Number
$100 million to $500 million. That’s the range of estimated liabilities Giuliani reported when he filed for bankruptcy.
Key Background
Giuliani filed for bankruptcy in December after he was ordered to pay the defamed workers $148 million in damages. Giuliani, who spread a fake conspiracy theory claiming the workers committed fraud in the 2020 election, reported assets between $1 million and $10 million in addition to $100 million to $500 million in estimated liabilities in his bankruptcy filing. Giuliani is also dealing with other financial woes, including more than $130,000 in attorneys fees stemming from the defamation case.
FURTHER READING
Rudy Giuliani Files For Bankruptcy Following Order To Pay $148 Million To Defamed Election Workers (Forbes)
Georgia Election Workers Challenge Giuliani’s Bankruptcy Claim (Forbes)