Rudy’s Troubles Deepen?!

( – Rudy Giuliani’s bankruptcy case has reached a new unexpected low, with his creditors pushing for the unusual step of having a third party manage his finances.

Since Giuliani sought bankruptcy protection following a $148 million defamation verdict, his creditors have accused him of concealing assets, including a coffee deal, overspending and delaying necessary paperwork.

Lawyers for Giuliani’s creditors will soon argue in a New York bankruptcy court that it is time for a trustee to take charge.

“Simply put, Mr. Giuliani and his bankruptcy case have reached an impasse,” the unsecured creditors committee stated in their motion.

Giuliani opted for Chapter 11 bankruptcy in December after being ordered to pay two Georgia election workers $148 million for spreading false claims about their involvement in election fraud on behalf of former President Trump in 2020. He has announced plans to appeal.

Chapter 11 allowed Giuliani to retain control over his assets, unlike Chapter 7, which would lead to asset liquidation.

“Mr. Giuliani went into Chapter 11 because he wanted to retain control. This is the key to Mr. Giuliani’s bankruptcy,” explained bankruptcy law expert Daniel Gielchinsky.

However, his creditors have grown suspicious of his motives and view the bankruptcy filing as merely a tactic to delay.

During a recent court session, U.S. Bankruptcy Judge Sean Lane voiced his concerns about the ongoing case.

“I am disturbed about the status of this case. The question is, as it always is in bankruptcy court, where do we go from here?” questioned Lane.

In a detailed 55-page motion, the creditors urged Judge Lane to appoint an independent trustee and criticized Giuliani’s preference for “theatrics over progress.”

“His creditors do not need to accept this as their plight, and the Committee refuses to do so. Accordingly, the time has come for the immediate appointment of a chapter 11 trustee to take control of the Debtor’s assets and financial affairs, including his wholly-owned businesses,” the motion detailed.

Should the judge agree, a trustee could potentially sell off assets or prevent Giuliani from shifting assets to his companies, which are not part of the bankruptcy filing.

Since declaring bankruptcy, Giuliani’s financial affairs have become public to reveal assets totaling $10.6 million, including luxury items and properties in New York and Florida.

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