Rudy Giuliani bankruptcy dismissed, so his $148 million defamation loss can be collected

Rudy Giuliani's bankruptcy case was dismissed Friday, paving the way for two election workers to start collecting on the $148 million judgment they won against him in a defamation case.

Judge Sean Lane ruled that dismissing the case with a one-year ban on Giuliani refiling it was in the best interest of Giuliani's creditors.

"The record in this case reflects Mr. Giuliani’s continued failure to meet his reporting obligations and provide the financial transparency required of a debtor in possession," Lane wrote in the decision.

"Forcing creditors to wait years while they are prevented from pursuing their rights for, at best, a modest distribution seems inequitable and ill-advised," Lane added.

Giuliani's bankruptcy case had placed a pause on collection efforts against him.

The decision is a victory for Ruby Freeman and Shaye Moss, two Georgia election workers during the 2020 presidential election who won a $148 million judgment against the former New York City mayor for defamation and other claims after Giuliani spread false accusations about the two stemming from his unsubstantiated claims of election fraud.

Election workers and Giuliani react

Freeman and Moss' lawyer, Rachel Strickland, said in a statement to USA TODAY after the Friday ruling that they would begin enforcing their judgment against him "as quickly as possible."

"We're pleased the Court saw through Mr. Giuliani's games and put a stop to his abuse of the bankruptcy proceeding," Strickland said.

Giuliani's bankruptcy case halted his ability to appeal his $148 legal loss to Freeman and Moss. The dismissal, which Giuliani filed a motion consenting to on Wednesday, will allow him to pursue that appeal. One of his lawyers, Gary Fischoff, reaffirmed Giuliani's stance Friday in a statement to USA TODAY.

"We think the court incorrectly adopted the creditors view of the facts of the case, but reached the correct result by dismissing the case," Fischoff said.

Judge criticizes Giuliani for lack of financial disclosure

Lane criticized Giuliani's activity – and lack thereof – in the bankruptcy case at length in his Friday ruling. Giuliani's business entities violated requirements by failing to produce records, and Giuliani himself didn't meet his obligation to file details on his financial condition, including on his creditors, assets, liabilities, and current income and expenditures, according to the ruling.

"The lack of financial transparency is particularly troubling," Lane said.

Lane said Giuliani was funneling income to his corporate entities and that monthly operating reports indicated he received no income from those entities, even though he was getting at least $15,000 per month as a radio show host and between $100,000 and $150,000 for hosting a podcast. Giuliani's radio show on WABC in New York was suspended in May after he repeatedly ignored warnings not to make false claims about the 2020 election on-air.

"Mr. Giuliani argues that operating through an alter ego limited liability company is 'customary' and not nefarious," Lane wrote. "But it is impossible to determine the appropriateness of these financial arrangements when Mr. Giuliani has completely failed to provide information about them."

This article originally appeared on USA TODAY: Giuliani bankruptcy tossed. Now $148 million judgment can be collected