Rudy Giuliani agrees to deal to end his bankruptcy case, pay creditors’ financial adviser $400k

(AP) — Rudy Giuliani has agreed to a last-minute deal to end his personal bankruptcy case and pay about $400,000 to a financial adviser hired by his creditors, avoiding a potential deep-dive into the former New York City mayor’s finances that was threatened by a federal judge.

The agreement was filed Wednesday in federal court in White Plains, New York. That came nearly three weeks after a judge there threw out Giuliani’s bankruptcy case after criticizing him for repeated failures to disclose his income sources and to comply with court orders.

But after Judge Sean Lane dismissed the bankruptcy case, Giuliani’s lawyers said he didn’t have the money to pay the creditors’ forensic financial adviser as required under bankruptcy laws, according to the judge. That led Lane last week to order all parties to submit proposals on how to end the case by noon Wednesday and prepare for a possible evidentiary hearing on Giuliani’s finances if no deal was reached.

The judge has to sign off on the agreement, which was filed less than three hours before the deadline.

The creditors include former Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss, who won a $148 million defamation judgment against Giuliani for his false ballot fraud claims against them related to the 2020 election. Freeman and Moss said Giuliani pushed Donald Trump’s lies about the election being stolen, which led to death threats that made them fear for their lives.

In the agreement filed Wednesday, Giuliani will give his lawyers $100,000 to help pay the creditors’ financial adviser, New York-based Global Data Risk, and pay the rest of the firm’s expenses from the proceeds of selling either his New York City apartment or Florida condominium, which are worth an estimated $5.6 million and $3.5 million, respectively, according to court documents.

Global Data Risk is also allowed to put liens on the New York City and Florida properties to make sure Giuliani pays all its fees, under the agreement.

Rachel Strickland, a lawyer for Freeman and Moss, said in a court filing earlier this month that Global Data Risk racked up $400,000 in expenses during the bankruptcy case.