NEW YORK (AP) 鈥� A judge threw out 鈥檚 bankruptcy case on Friday, finding that the former New York City mayor had flouted the process with a lack of transparency.
U.S. Bankruptcy Judge Sean Lane formalized the decision after saying he was leaning toward doing so on Wednesday. Lawyers for Giuliani and his two biggest creditors 鈥� two former election workers he was found to have defamed 鈥� had agreed that dismissing the case was the best way forward.
The dismissal ends Giuliani鈥檚 pursuit of bankruptcy protection but doesn鈥檛 absolve him of his debts. His creditors can now pursue other legal remedies to recoup at least some of the money they鈥檙e owed, such as getting a court order to seize his apartments and other assets.
Dismissing the case will also allow the ex-mayor to pursue an appeal in the defamation case, which arose from his efforts to overturn Donald Trump鈥檚 2020 election loss.
Lane said evidence in the case showed that Giuliani had failed to meet obligations of financial transparency required of a debtor and that dismissing the bankruptcy was in the best interests of people to whom the ex-mayor owes money.
鈥淭he lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case,鈥� Lane wrote in a 22-page decision.
The judge said that most debtors will seek to remedy such problems when alerted to them, but, 鈥淏y contrast, Mr. Giuliani has done nothing.鈥�
A message seeking comment was left with Giuliani鈥檚 lawyer and spokesperson.
Giuliani鈥檚 other creditors had wanted to keep the bankruptcy case going with a court-appointed trustee taking control of Giuliani鈥檚 assets.
The dismissal includes a 12-month ban on Giuliani filing again for bankruptcy protection.
Giuliani filed for bankruptcy last December, days after the two ex-Georgia election workers 鈥� Ruby Freeman and her daughter, Wandrea 鈥淪haye鈥� Moss 鈥� won against him.
They said Giuliani鈥檚 targeting of them because of Trump鈥檚 lies about the 2020 election being stolen led to death threats that made them fear for their lives. The filing froze collection of the debt.
Michael R. Sisak, The Associated Press
