Key Points
- Donald Trump's former lawyer has filed for bankruptcy after being ordered to pay millions to two election workers.
- Rudy Giuliani was found to have defamed the workers after falsely accusing them of vote fraud.
- His other creditors include President Joe Biden's son Hunter Biden, a former employee and voting machine companies.
Rudy Giuliani has filed for bankruptcy, just days after he was ordered to pay $US148 million ($219 million) to two former Georgia election workers he falsely accused of fraud as he worked to overturn Donald Trump's 2020 presidential election loss.
Giuliani, who was known as "America's mayor" for his leadership of New York after the September 11 attacks in 2001, faces a crush of debts stemming from his work on former president Trump's behalf. He also in Georgia.
In a filing in the US Bankruptcy Court in New York, Giuliani said he had between $US100 million and $US500 million ($148m to $740m) in liabilities and $US1 million to $US10 million ($1.5m to $15m) in assets.
A spokesperson for Giuliani said the bankruptcy filing would give him time to appeal the $US148 million ($219 million) penalty and ensure that other creditors are treated fairly.
"No person could have reasonably believed that Mayor Rudy Giuliani would be able to pay such a high punitive amount," spokesperson Ted Goodman said.
Giuliani owes $US148 million ($219 million) to two former election workers, Wandrea "Shaye" Moss and her mother Ruby Freeman, who faced a deluge of threats after he falsely claimed they were engaged in voting fraud.
Giuliani has repeated those claims following the verdict even though he has admitted in court that they were defamatory, prompting the two workers to file a second lawsuit.
A federal judge on Wednesday ruled that Giuliani must immediately begin paying the two women, concluding there was a risk he may attempt to conceal his assets.
US bankruptcy proceedings can enable people and companies to wipe away or reorganise their debts, and Giuliani's filing will likely pause all of the pending lawsuits against him.
However, it may not allow him to duck the money he owes the election workers, as judges have ruled that defamation penalties cannot be discharged if a debtor has engaged in "wilful and malicious" conduct.
Giuliani was ordered earlier this week to immediately begin paying the money he owes the two former election workers. Source: AAP / Jose Luis Magana
Hunter Biden has sued Giuliani for violating his privacy over data allegedly taken from his laptop, while Dunphy has sued him for sexual assault, harassment and wage theft. Giuliani has denied the allegations.
Dunphy's lawyer Justin Kelton said they would not be deterred from pursuing the case.
Other creditors include Smartmatic USA and an employee of Dominion Voting Systems.
Giuliani of flipping votes from Trump to Biden, his Democratic rival in the 2020 election.
The two companies did not immediately respond to requests for comment.
Giuliani also said he owed nearly $US1 million ($1.5 million) to the US and New York state governments and nearly $US2 million ($3 million) in legal fees.
Two law firms that formerly represented Giuliani have sued him for unpaid bills.
Giuliani's role in Trump's attempt to overturn 2020 election loss
As Trump's personal lawyer, Giuliani led efforts to overturn his election loss through unsuccessful lawsuits and a wide-ranging effort to produce fake slates of electors in battleground states.
His seat-of-the-pants effort drew widespread ridicule. He scheduled a press conference at a "Four Seasons" in Philadelphia that .
At another news conference, a dark substance, possibly hair dye, dripped down his face.
He called for "trial by combat" at a rally for Trump supporters on 6 January 2021, shortly before thousands of them attacked the US Capitol in an effort to prevent Congress from certifying Trump's defeat.
Giuliani has pleaded not guilty to criminal charges of election subversion in Georgia, along with Trump and more than a dozen other co-defendants.
