United States – Trump’s ex-attorney Giuliani is seeking to reorganize his individual bankruptcy case into a Chapter 7 liquidation of the business with the request to a U. S. judge to name a trustee to sell the debtor’s assets; however, his creditors are against this move as they consider it a strategy to hold the case longer.
Stiff Resistance in Bankruptcy Case
Several of Giuliani’s creditors, including two election officials from Georgia who were awarded USD 148m in damages from Giuliani earlier this year, asserted that Giuliani’s motion to appoint a Chapter 7 trustee was mainly an attempt to stall their ongoing probe into the ex-New York mayor’s financial records, as reported by Reuters.
Wednesday’s contempt of court hearing will likely signify some degree of Giuliani’s loss of control regardless of the judge’s ruling on Gekas’ proposal regarding the sale of his assets.
This creditors committee also accused Giuliani of an acting like an ‘aged man’ if that is how he looks while he disregards court orders, goes on spending sprees, and avoiding his duty to disclose his financial status.
Creditors Claim Stalling Tactics
Former Georgia election workers Wandrea “Shaye” Moss and her mother, Ruby Freeman, requested that the former New York mayor be ejected from his bankruptcy case so they could attempt to execute judgments against him in other courts.
Giuliani filed his bankruptcy in New York as a Chapter 11 case, which means that he is the master of the estate as much as he is allowed to try to pay off the amount owed to the creditors in some way. However, Chapter 11 also mandates that he report his expenses to the court and pay some of the creditors’ attorney fees.
Realizing Chapter 7 on his case would make the selling of his property more straightforward and would also eliminate the court-appointed creditors’ committee.
Specifically, Giuliani’s creditors claimed that he recently opposed the appointment of the trustee. Thus, his ‘sudden change of heart’ may indicate an intent to undermine the committee and its work, including an investigation of his financial activity. A Chapter 7 trustee would have to reopen that investigation and “will not act with the same tenacity” to go against Giuliani, the creditors said, as reported by Reuters.
Background and Legal Troubles
In December, Giuliani sought Chapter 11 bankruptcy protection after a US District Court in Washington, DC, ordered him to pay USD 148m to two Georgia election workers whom he accused of rigging the 2020 election without foundation. Giuliani has recently been charged with crimes in Georgia and Arizona for his role in promoting former President Donald Trump’s efforts to overturn the presidential election, and due to his claims of election fraud, he has been suspended from practicing law in New York.
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