Bankruptcy Judge Considers Putting Giuliani to Testify About Finances

The judge in Rudy Giuliani’s bankruptcy case is increasingly frustrated, suggesting Thursday that he may require the former New York mayor to take the stand to testify about his finances.

Since U.S. Bankruptcy Judge Sean Lane earlier this month ordered Giuliani’s bankruptcy to be thrown out for lack of financial transparency, Trump’s former lawyer and his creditors have been at an impasse over how to repay $400. thousand in estimated administrative expenses so that the case can be closed.

Lane expressed exasperation with the lack of progress at a hearing last week. On a new order issued Thursdayhe warned Giuliani that he may need to testify under oath to answer questions about his available assets.

“The most obvious path forward is to initiate a process to evaluate the details of the Debtor’s current financial circumstances with the ultimate goal of drafting a detailed dismissal order that ensures payment of the estate’s administrative expenses,” Lane wrote.

“Such avenue will inevitably include the disclosure of documents and may include sworn testimony from the Debtor,” he continued. “Of course, this path may reflect, in some ways, the unsuccessful financial transparency efforts that have plagued the case to date.”

But Lane also warned that he may “need to reconsider” rejecting Giuliani’s bankruptcy and instead appoint an independent bankruptcy trustee to take control of the mayor-turned-Trump lawyer’s finances, a move Giuliani has resisted.

“Although the Court has previously announced its intention not to waive the dismissal of the case, there may come a point where dismissal is no longer an option because the Debtor is unwilling to pay these administrative expenses, a necessary requirement under the law for dismissal from the case,” Lane wrote.

The judge ordered the parties to submit written proposals for next steps by the end of the month.

Giuliani filed for Chapter 11 bankruptcy in December after a jury ordered him to pay $148 million for defaming two Georgia election workers, Ruby Freeman and Shaye Moss, by spreading a baseless conspiracy that the pair were involved in mass voter fraud in 2020. Giuliani vowed to appeal.

After months of rising tensions and accusations of bad faith, the judge said he would dismiss Giuliani’s bankruptcy, allowing him to maintain control of his finances while delaying payment.

But before formally resting the case, the parties argued over how Giuliani should pay $400,000 in estimated fees and expenses owed to a company the bankruptcy court approved to investigate the former mayor’s finances.

Creditors claim Giuliani is not being transparent with his available assets that could be used to pay the fees. Giuliani’s legal team, in turn, said it had made “numerous offers to try to resolve the issues.”

After the judge urged them several times to return to the negotiating table, they were unable to reach an agreement.

Lane warned at a hearing last week that he was losing patience, saying Giuliani was essentially sticking his head in the sand.

“There are a lot of bad things that can happen,” Lane said. “Or let me rephrase, there are a lot of things your client doesn’t want to happen [that] will happen.”

This story originally appeared on thehill.com read the full story