Judge clears way for creditors to seize Rudy Giuliani’s assets after dismissing his bankruptcy case

A federal judge has thrown out cash-strapped Rudy Giuliani’s bankruptcy case, opening the door for election workers he defamed to recover tens of millions of dollars owed to them for his baseless allegations surrounding the 2020 election.

Giuliani also failed to change his case from Chapter 11 to Chapter 7 in an attempt to liquidate his assets.

A decision from bankruptcy court judge Sean Lane on Friday came days after Giuliani himself moved to dismiss his case, and after lawyers for the two election workers and other people the disgraced former New York City mayor owes money to had agreed that the move was the best path forward.

The end of his attempts to get bankruptcy protection does not let him off the hook for his mountain of debts. His creditors will still be able to rely on the courts to collect what they’re owed, including pressing for court orders to seize his properties and other assets.

Giuliani’s lawyer Gary Fischoff told the court on Wednesday that dismissing the case would give him the “best chance” of appealing the defamation verdict.

Lawyers for the creditors’ committee asked the court to appoint a Chapter 11 trustee instead, which would mean Giuliani would relinquish control of his finances for the “most equitable outcome” for the creditors, many of whom have not yet resolved their litigation against him.

Those cases have been on pause since Giuliani’s bankruptcy case began. The stays will now be lifted.

In his order on Friday, Judge Lane said the court’s record “reflects Mr. Giuliani’s continued failure to meet his reporting obligations and provide the financial transparency required of a debtor in possession.”

“The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani