In a significant blow to former New York City mayor Rudy Giuliani, a federal bankruptcy court judge has dismissed his bankruptcy case, citing the "best interests of creditors." This decision leaves Giuliani vulnerable to lawsuits, foreclosures, and other measures that would enable creditors, including defamed Georgia election workers, to collect the amounts owed to them.

The judge's ruling comes after months of missed deadlines by Giuliani, who had been evasive about his finances. The court noted that there was a lack of financial transparency, which raised concerns about potential self-dealing and conflicts of interest that could hinder the administration of his bankruptcy case.

Giuliani filed for bankruptcy in December 2023 following a jury's order for him to pay nearly $150 million in fines and damages to Ruby Freeman and Shaye Moss, former election workers. They accused Giuliani of defaming them with false accusations of election fraud during the ballot counting process in Georgia's Fulton County on Election Day in 2020.

Rachel Strickland, the attorney representing Freeman and Moss, expressed satisfaction with the court's decision, stating that they would now seek to enforce the judgment against Giuliani. Strickland emphasized that they would swiftly move forward to ensure they receive the compensation they are owed.

The dismissal of the bankruptcy case also grants Giuliani the opportunity to appeal the defamation judgment. Ted Goodman, Giuliani's political adviser, expressed frustration with the ruling, stating that the bankruptcy case had been burdened with various discovery requests and actions aimed at harming the former mayor and his businesses. Goodman remains confident that the justice system will ultimately restore Giuliani's reputation and vindicate him.

The dismissal of Giuliani's bankruptcy case will have far-reaching consequences, as it allows creditors to take legal action to collect what is rightfully owed to them. The former mayor's financial situation now hangs in the balance, as he faces the possibility of further legal challenges and financial repercussions.