The judge overseeing Rudy Giuliani's bankruptcy case expressed deep concern about the lack of progress in resolving his financial issues. He also refused to lift a legal barrier that prevented Giuliani from appealing a $148 million defamation judgment. Giuliani filed for bankruptcy in December after being ordered to pay the substantial sum to two former election workers for promoting a false conspiracy theory about their involvement in the 2020 election.
Despite missing deadlines for financial disclosures and failing to sell properties in New York and Florida, Giuliani's legal team claimed he has potential income sources lined up. However, they did not provide specific details about these sources. Giuliani's Manhattan apartment may be liquidated soon, according to his attorneys. They assured the court that financial filings and outstanding issues are being addressed.
Responding to the judge's concerns, Giuliani's lawyer stated that they have resolved outstanding issues and will ensure that necessary financial filings are completed. However, Giuliani is facing claims from numerous individuals alleging that he owes them money.
The judge declined Giuliani's request to lift an automatic stay, which would have allowed him to pursue post-judgment litigation in the defamation case. Creditors' lawyers argued that this would further delay the bankruptcy proceeding.
Regarding a request from the election workers' lawyers to prohibit Giuliani from making additional defamatory statements, the judge postponed a decision. He emphasized that the court would not tolerate parties violating the law and using it as a platform for such actions.
The judge instructed Giuliani's lawyers to advise him to cease making defamatory statements. The case will be discussed further in another meeting on Thursday.