NEW YORK — A group of people and companies who say Rudy Giuliani owes them money gathered virtually Friday for the first court hearing since he filed for bankruptcy protection last month after losing a defamation lawsuit against two Georgia election workers.
During a two-hour Zoom hearing, a lawyer for Giuliani told a U.S. bankruptcy judge that the former New York City mayor lacks funds to pay $148 million he owes election workers. for spreading a conspiracy about his role in the 2020 election. Others with claims against Giuliani should also wait.
“There is no pot of gold at the end of the rainbow,” said attorney Gary Fischoff, noting that Giuliani made a living as a radio and podcast host while dealing with a wide range of “financial issues.”
The bankruptcy filing has spawned a diverse coalition of creditors who previously sued Giuliani over unrelated issues.
In addition to election workers, creditors include a supermarket employee who was jailed for patting Giuliani on the back, two election technology companies he spread conspiracies about, a woman who says he forced her to have sex, several of his former lawyers, the IRS and Hunter Biden. Biden is suing Giuliani, saying he wrongly shared his personal data after obtaining it from the owner of a computer repair shop.
Giuliani’s bankruptcy filing last month came a day after a judge ordered him to immediately pay $148 million to Ruby Freeman and her daughter, Wandrea “Shaye” Moss. The Chapter 11 filing halted the sentencing but also prevented Giuliani from challenging the verdict.
During Friday’s hearing, Giuliani’s attorney tried to convince bankruptcy Judge Sean Lane to temporarily lift the stay to allow him to appeal the ruling.
Lane agreed to the procedural step, with certain conditions, adding: “There is a legitimate concern here about expense, cost and delay.”
Some of Giuliani’s creditors have expressed concern that he is taking advantage of the bankruptcy process to avoid paying his debts.
Noting that Giuliani has a “transactional relationship with the truth,” the lawyer for a group of creditors, Abid Qureshi, urged the judge to establish barriers to ensure that the litigation is not unnecessarily prolonged.
And he hinted at a possible conflict between those who say Giuliani owes them money, warning that the judge’s decision could have “unintended consequences of a certain creditor jumping the queue.”
Ron Kuby, an attorney representing Daniel Gill, a ShopRite employee who is suing Giuliani for allegedly fabricating an assault against him, said there was “no discord among creditors.”
The next hearing is scheduled for January 31.