Creditors are pressing for Rudy Giuliani to sell his $3.5 million Florida condo to offset his substantial debts, per a court document filed on Friday.
The former New York City mayor sought bankruptcy protection in December, citing numerous outstanding debts, notably a $148 million payment demanded by two Georgia election poll workers.
Giuliani falsely alleged their involvement in tampering with 2020 election ballots during his tenure as legal counsel for former President Donald Trump.
Responding to Friday’s filing, Giuliani’s legal representative argued against the premature nature of the request to sell the Florida condo. “The case is still in its infancy,” stated Heath Berger, a partner at Berger, Fischoff, Shumer, Wexler & Goodman, LLP, who handles Giuliani’s bankruptcy litigation.
Giuliani maintains an assertion of lacking funds to settle his debts, as stated in the Friday court filing: “According to the Debtor’s counsel, ‘there’s no pot of gold at the end of the rainbow.'”
Berger informed CNBC that Giuliani’s main income sources are Social Security payments and funds from his Individual Retirement Account. However, the court document itemized various expenditures Giuliani incurs to sustain his lifestyle.
For instance, Giuliani reportedly spends a substantial monthly to maintain his Florida condo. Additionally, in January, he accumulated over $26,200 in credit card payments across 60 Amazon transactions, encompassing expenses for Netflix, Prime Video, Kindle, Audible, Paramount+, Uber rides, and more.
Berger defended these expenses, asserting their alignment with normal living costs: “Unfortunately, like everybody else, that’s like a debit card for him.”
Creditors perceive Giuliani’s real estate holdings as viable targets for debt recovery. They contend that his “pre-war co-op” apartment in New York City’s Upper East Side is exempt as it serves as his primary residence.
Nevertheless, Giuliani reportedly spends “approximately 20-30% of his time in Florida,” prompting creditors to advocate for the sale of his $3.5 million condo.
“It is merely a matter of when, not if, the Debtor will have to sell the Florida Condo in order to distribute the proceeds thereof to creditors,” stated the filing.
Berger disclosed Giuliani’s plans to sell his Manhattan apartment and transition to residing full-time in Florida, citing lower maintenance costs and greater creditor distributions from the sale.
Also, Berger mentioned impending conclusions to payments related to Giuliani’s divorce within the next year.
Creditors also demanded that Giuliani secure homeowners insurance for his Florida and New York City residences, considering them his two most valuable assets. Giuliani purportedly claimed inability to afford the insurance.
Giuliani’s involvement in attempts to overturn the 2020 election results has embroiled him in legal troubles, culminating in his bankruptcy filing. The December filing estimated his assets between $1 million and $10 million, with nearly $152 million in debts, including amounts owed to the IRS and law firms.
