Trump's Ex-Lawyer Rudy Giuliani Cleared From Bankruptcy After Fee Dispute Settled

A judge has officially concluded Rudy Giuliani’s bankruptcy, paving the way for lawsuits related to his work for Donald Trump to move forward.

This decision comes after a two-week delay caused by Giuliani’s failure to cover specific legal fees, reported Reuters.

Giuliani filed for Chapter 11 bankruptcy in December after being ordered by a court to pay $148 million to two Georgia election workers he falsely accused of vote-rigging in the 2020 election.

The bankruptcy filing had halted the collection of the judgment and frozen other lawsuits tied to his work for Trump.

Also Read: Hunter Biden Abandons Lawsuit Against Former Trump Lawyer Rudy Giuliani, Court Documents Reveal

Bankruptcy Ends After Fee Dispute Resolution

U.S. Bankruptcy Judge Sean Lane ended Giuliani’s bankruptcy on Friday, following his July 12 ruling that Giuliani should be removed from bankruptcy due to missing financial disclosures and refusal to repay creditors. Last week, Lane considered alternatives such as appointing a trustee or compelling Giuliani to testify about his refusal to pay fees.

Giuliani has now resolved the fee dispute by depositing $100,000 into an escrow account, with the final amount owed to be determined. Creditors had sought approximately $350,000 for their investigation into his finances. Remaining fees will be covered by selling Giuliani’s New York penthouse or luxury Florida condo. Giuliani’s attorney, Heath Berger, confirmed that the New York apartment is up for sale and Giuliani plans to relocate to Florida.

Lawsuits and Appeals Continue

The bankruptcy had stalled the collection of the $148 million judgment against Giuliani by two Georgia election workers and froze other lawsuits from his Trump-related work. Giuliani plans to appeal the defamation verdict, according to his attorneys.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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