Giuliani May Yet Testify in Bankruptcy Case as Judges Weighs Reversing Dismissal

Rudy Giuliani speaks to members of the media in Manchester, N.H., on Jan. 21, 2024. (Brandon Bell/Getty Images)

Former New York City mayor Rudy Giuliani may have to take the stand in court to testify about the state of his finances as the judge in his bankruptcy case reconsiders his previous dismissal.

U.S. Bankruptcy Judge Sean Lane of the Southern District of New York is overseeing the case against Mr. Giuliani, 80.

The judge last month dismissed the case against him, ruling that it was in the best interests of those owed money by Mr. Giuliani after finding that the former lawyer had failed to meet obligations of financial transparency.

However, in a July 24 order, the judge said he has been unable to file documents dismissing the case because the estimated $400,000 in administrative fees accumulated during litigation has not been paid. Mr. Giuliani’s lawyers have said their client can’t pay the fees.

“In the vast majority of cases facing dismissal, this issue is resolved without Court intervention,” the judge wrote. “But with no resolution on the horizon here, the Court must take an active role in determining how to provide for payment of these administrative expenses if dismissal is to occur.”

Judge Lane said the “most obvious path forward” is to initiate proceedings to assess the details of Mr. Giuliani’s current financial circumstances to create a detailed dismissal order ensuring administrative fees are paid.

“Such a route will inevitably include disclosure of documents and might include testimony under oath by the Debtor,” he continued. “Of course, this path might mirror in some ways the unsuccessful efforts at financial transparency that have plagued the case to date.”

The judge said little is known about Mr. Giuliani’s financial situation, which he said makes “his stance here more troubling.”

He said the court may “need to reconsider” whether dismissing the bankruptcy case against Mr. Giuliani “is the most appropriate course of action.”

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“While the Court previously announced its intention not to waiver on dismissal of the case, there may come a point when dismissal is no longer an option because the Debtor is unwilling to pay these administrative expenses, a necessary requirement under the law for dismissal of the case,” Judge Lane wrote.

In that instance, the court may consider appointing an independent bankruptcy trustee to “supervise the administration” of Mr. Giuliani’s financial affairs and to “promptly liquidate assets” such as his apartment in New York, if appropriate.

Concluding the order, the judge asked both parties in the case to submit court filings to “provide their views on the most appropriate path forward.”

Those filings must be submitted by July 31, he said.

After reviewing the submissions, the court will outline the next steps in the case, the judge said.

The Epoch Times has contacted an attorney for Mr. Giuliani for comment.

Mr. Giuliani—who served as President Donald Trump’s legal adviser in 2020—filed for Chapter 11 bankruptcy in December 2023 after he was ordered to pay $148 million for defaming two Georgia election workers, Ruby Freeman and Shaye Moss.

Mr. Giuliani had accused the mother and daughter duo of committing election fraud in 2020.

Judge Lane’s decision to toss out Mr. Giuliani’s bankruptcy last month paved the way for Ms. Freeman and Ms. Moss to pursue their effort to collect the $148 million awarded to them in the U.S. District Court for the District of Columbia case.

It also prevented Mr. Giuliani from refiling for Chapter 11 bankruptcy for one year.