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Former New York City Mayor Rudy Giuliani faced a threat of jail during a chaotic bankruptcy hearing on Wednesday (July 10). Judge Sean Lane, who presided over the hearing, warned Giuliani that his microphone could be cut off due to repeated interjections.
The judge also indicated that he was leaning towards dismissing Giuliani's bankruptcy case, with a final ruling expected later this week.
Giuliani's bankruptcy was triggered by a $148 million verdict against him after he falsely accused Georgia election workers Shaye Moss and Ruby Freeman of 2020 election fraud. During the hearing, Giuliani contested his creditors' allegations of bankruptcy crimes.
“Highly defamatory, your honor!” Giuliani exclaimed.
The former mayor's creditors, including the electronic voting machine company Dominion Voting Systems and former employee Noelle Dunphy, accuse him of using bankruptcy as a delay tactic while hiding assets and spending extravagantly. They propose appointing a bankruptcy trustee to take control of Giuliani's assets and monitor his finances.
Giuliani's team agreed with the election workers' proposal to dismiss the bankruptcy less than an hour before the hearing. However, the official creditors committee wants to remain in the bankruptcy system, fearing they would otherwise be left with nothing. The case continues to unfold, with the final ruling expected on Friday.