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- Rudy Giuliani may have to sell his Palm Beach condo to settle bankruptcy debts.
- Creditors pointed out that his Chapter 11 bankruptcy filing did not exempt $3.5 million in real estate.
- Giuliani filed for bankruptcy in December after receiving a $148 civil judgment.
Rudy Giuliani may have to sell his Palm Beach, Fla., home — his second-most valuable asset, according to creditors — to settle debts in bankruptcy court. be.
Giuliani, who filed for Chapter 11 bankruptcy, owns two residences, according to a federal court filing Friday.
One is a $6.5 million apartment in New York that Giuliani put up for sale last summer but put up for sale in February. Giuliani’s New York apartment is a tax-exempt asset because it is his primary residence, according to court filings.
Then there’s his $3.5 million Florida condo, which is not exempt.
The creditors, who describe the condominium as a “luxury building with amenities such as a resort-style pool and outdoor lounge area,” say the building is in dispute because Giuliani claims he has very few assets. He said that this is the key to fulfilling the requirements.
The filing was first reported by Politico’s Kyle Cheney.
“The debtor has emphasized on several occasions that it has limited assets to distribute to creditors. According to the debtor’s attorney, there is ‘no money at the end of the rainbow.'” It is stated in.
Even if Mr. Giuliani were to say he has a right to live in Florida, his claim would fail because Mr. Giuliani has previously told the court that he spends most of his time in New York City, the creditors wrote. There is.
“Any proposal by the debtors to claim the New York state homeownership exemption for their New York City apartment and retain their non-exempt multi-million dollar Florida condominium cannot withstand legal scrutiny,” the bond states. they claim.
However, Giuliani has not taken any steps to sell his Florida home, the filing states. During that time, instead of paying his debts, he has been spending what little money he has, $8,416 a month, on condominium “management fees.” His creditors called this a “depletion of property resources.”
At the time, CNN reported that his condo had a federal tax lien of more than $550,000 due at the end of 2023.
Mr. Giuliani’s creditors also required Mr. Giuliani to carry homeowners insurance on his properties in Florida and New York, saying that the lack of protection would protect him if something were to happen to either home. He said creditors were exposed to “significant risks”.
Mr. Giuliani filed for bankruptcy in December after spending heavily on civil lawsuits and legal fees from his RICO charges in Georgia. The most notable of his financial debts is a $148 million judgment against Georgia election workers Ruby Freeman and Wandrea “Shay” Moss, which the court ruled in libel. admitted that he was responsible.
However, legal experts previously told Business Insider that bankruptcy does not exempt it from that particular judgment.
Mr. Giuliani’s lawyers and creditors did not immediately respond to requests for comment from BI.
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