Creditors are stepping up their efforts to reclaim large debts from former New York City Mayor Rudy Giuliani, targeting his $3.5 million Florida condominium, according to a recent court filing.
The saga unfolds as Giuliani navigates a bankruptcy proceeding initiated in December, citing a slew of unpaid debts — most notably a whopping $148 million claim linked to allegations of Georgia election poll workers tampering with 2020 ballots — incurred during his tenure as former President Donald Trump’s lawyer.
In response to the latest court action, Giuliani’s legal team, lead by Heath Berger of Berger, Fischoff, Shumer, Wexler & Goodman, LLP, rejected the attempt to force the sale of his Florida property, calling the move “extremely premature.”
“The case is still in its infancy,” Berger told CNBC, emphasizing that Giuliani’s bankruptcy litigation is ongoing.
Giuliani claims he does not have the financial wherewithal to pay off his debts, citing Social Security checks and monies from his Individual Retirement Account as his principal sources of income.
However, court filings show Giuliani’s substantial monthly expenses to maintain his Florida home, including nearly $26,200 on his credit card in January alone for Amazon shopping, Netflix, and Uber rides.
“Unfortunately, like everybody else, that’s like a debit card for him,” Berger told the newspaper. “We don’t believe that there’s anything out of the ordinary, outside of normal living expenses.”
While Giuliani’s main residence in New York is still protected because it is listed as his primary residence, his Florida property has become a focal point for creditors looking to recoup what they owe, according to the court filing, which cites Giuliani’s significant presence in the Sunshine State as justification for targeting the condo.
The letter indicated that Giuliani spends “approximately 20-30% of his time in Florida,” thus creditors demanded the $3.5 million condo be liquidated.
However, Giuliani’s legal team claims he is already in the process of selling his Manhattan flat with the intention of relocating to Florida permanently.
However, The Post recently reported that Giuliani had temporarily removed his New York property from the market. The Post has reached out to his representatives for clarification.
Despite creditors’ demands for homeowners insurance coverage for both his Florida and New York homes, Giuliani claims he cannot afford such coverage.
The prospect of court fights coming from Giuliani’s involvement in efforts to overturn the 2020 election looms huge, adding to his terrible financial situation.
His bankruptcy declaration offered a bleak picture, estimating assets between $1 million and $10 million, in stark contrast to the towering $152 million debt burden, which included liabilities to the IRS and law firms.