Furious Creditors Have Formally Requested That A Trustee Take Over Giuliani’s Finances

(NewsSpace.com) – Rudy Giuliani has fallen a long way since being dubbed “America’s Mayor” following the September 11 attacks. He’s facing indictments in a number of cases pertaining to the 2020 election, and a jury found him liable for defamation against two Georgia poll workers. Giuliani is also on the hook for significant legal fees and has filed for bankruptcy. However, his handling of his money has led to some lawyers seeking a trustee.

In December, after a Georgia court ordered him to pay more than $140 million to poll workers Ruby Freeman and Shay Moss, Giuliani filed for Chapter 11 bankruptcy with the court’s permission. However, his creditors are now asking a court to appoint a trustee to oversee his finances. They are accusing him of hiding assets and failing to comply with bankruptcy rules.

If the court appoints a trustee, it could lead to frozen bank accounts and the reversal of completed transactions. A trustee might even recommend selling Giuliani’s estate to pay off his debts, which exceed $150 million.

By contrast, the former New York City mayor and Trump lawyer said in his court filings that he had only $14,000 in his checking account and much less—$351—in his savings. His IRA accounts had more than $1 million. Yet, his spending hasn’t matched up to the numbers. According to Bloomberg Law, he spent $120,000 in January alone, according to court papers. In February, March, and April, he expended $20,0000, $28,000, and $30,000, respectively, drawing the ire of one of the election workers to whom he owes money.

It’s not just Giuliani’s creditors who are frustrated with him; US Bankruptcy Judge Sean Lane is as well. He warned the former lawyer that his creditors’ attorneys could seek “draconian requests for relief in the future.” Giuliani is likely to fight the request for a trustee, but under bankruptcy code, he has violated many of the standards that would allow for one to be appointed.

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