In a dramatic turn of events, former New York mayor Rudy Giuliani's bankruptcy proceedings reached a critical juncture on Wednesday, leaving his multimillion-dollar properties in Manhattan and Palm Beach at risk of being seized. A federal bankruptcy judge has stated that he plans to make a decision by the end of the week regarding whether Giuliani should exit bankruptcy protection or have a trustee oversee his financial affairs.

The hearing, which took place in White Plains, New York, saw Giuliani facing accusations from creditors who claimed that he had not been forthcoming about his finances as they attempted to collect what is owed to them. The primary creditors, Georgia election workers Ruby Freeman and Shaye Moss, are seeking to seize Giuliani's properties, making them his most significant creditors.

Attorney Rachel Strickland, representing Freeman and Moss, expressed her frustration, stating, "It's time for Mr. Giuliani to go back to the real world where he can't use Chapter 11 as a sword and a shield." Concerns were raised by Judge Sean Lane about Giuliani's level of transparency during the proceedings, leading him to express apprehension about keeping the former mayor tied up in bankruptcy.

Judge Lane announced that he intends to deliver his decision on Friday afternoon, indicating the next steps for Giuliani. If Giuliani leaves bankruptcy protection, he may continue to contest the control of his two homes and appeal the $148 million defamation verdict awarded to Freeman and Moss.

Giuliani's attorney, Heath Berger, confirmed that any disputes would be handled in state court. Berger stated, "The Freeman plaintiffs will take advantage of all of their remedies available, and Mr. Giuliani will take advantage of all remedies that he has available."

The bankruptcy hearing on Wednesday featured a series of filings, during which Giuliani attempted to change his position after battling his creditors for months. Giuliani proposed leaving bankruptcy protection, aligning himself with Freeman and Moss, while simultaneously expressing frustration with their lawyer's criticism of him. If the judge supports their plan, Freeman and Moss would be entitled to seize both of Giuliani's homes immediately.

Giuliani made several interruptions during the hearing, prompting the judge to warn him against further disruptions. Other creditors, who do not wish to see Giuliani leave bankruptcy, argued to the judge for the removal of all his accounts from his control and their placement under the supervision of a Chapter 11 trustee.

Giuliani's fate now hangs in the balance as he awaits the judge's decision. With his properties and financial future at stake, the former mayor's bankruptcy proceedings have clearly entered a crucial phase. As the deadline for the judge's verdict approaches, the outcome of this high-profile case will be closely watched by many in the coming days.