(NewsSpace.com) – To most of the world, former President Donald Trump is seen as a billionaire. He’s the son of Fred Trump, a well-known successful real estate developer who was worth nine figures at the time of his death. His son built considerably on that wealth and reportedly turned it into billions. However, according to an analyst, Trump isn’t likely worth that much at all these days.
Facing Bankruptcy?
Speaking with Newsweek, Jon Gabrielsen, a market economist in Atlanta, said the former president is “screwed, blued, and tattoed,” when it comes to the judgments against him. That is, unless he can come up with some more cash.
While Trump is a billionaire on paper, his net worth is hard to liquidate as it’s tied up in real estate. Also, businesses are legally prohibited from using all of their cash to pay for lawsuits. They have to keep an extra float for expenses. Gabrielsen further explained what bankruptcy means, which many people believe to mean the point at which your bank balance reaches zero. Instead, the economist elaborates, “You are bankrupt when your balance falls below the amount of float you need in order to continue as a going concern,” an accounting term for having an adequate amount of resources to continue operations for the foreseeable future.
Trump’s Legal Woes Costing Hundreds of Millions
Trump has been found guilty of defamation and business fraud in two separate cases. He was ordered to pay E. Jean Carroll $83.3 million in the defamation case, and then fined $454 million in the New York fraud case.
Trump recently paid a bond worth more than $92 million to appeal the Carroll penalty, and he must post a bond worth $454 million in order to do the same with the business fraud case. Trump previously asked a judge to reduce the bond amount to $100 million, a request that was denied.
So now, he has until March 25 to secure the $454 million bond, otherwise, he has two options. He can pay the judgment in full or he faces having his assets seized by Attorney General Letitia James. She’s not limited to seizing New York assets, either. She can go after those in other states. Should that be the case, the natural decision one would make in that instance would be to file bankruptcy. That would protect business assets.
Whether that’s an avenue Trump wants to take isn’t clear at the moment, but time is of the essence.
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