Creditors of Rudolph Giuliani are preparing to investigate claims he may have against Donald Trump for unpaid legal fees, which could potentially result in a lawsuit in bankruptcy court, as per sources.
An official committee representing Giuliani’s unsecured creditors will look into agreements he had with the former US president for legal services. This investigation, part of Giuliani’s Chapter 11 bankruptcy proceedings, might lead to a lawsuit against Trump by Giuliani’s bankruptcy estate, sources familiar with the situation have stated.
The intention of Giuliani’s creditors to pursue legal action against Trump was initially reported by The Independent.
Giuliani, who filed for bankruptcy last year after being required to pay $148 million to two Georgia poll workers, informed creditors in a meeting in February that he is still owed around $2 million for his legal services for Trump’s 2020 campaign and efforts to challenge the election results.
In a court filing on February 27, Giuliani disclosed a potential claim for unpaid legal fees against Donald J. Trump, despite asserting earlier that the claim was against the Trump campaign and the Republican National Committee, not Trump personally.
Sources familiar with the matter have indicated that if Giuliani is unwilling to sue Trump, the creditors’ committee could take action on behalf of the bankruptcy estate.
Former Giuliani associate Lev Parnas expressed doubt that Giuliani would sue Trump willingly without being pressured, noting that Giuliani relies on support from the MAGA crowd for financial stability.
Giuliani, currently facing an estimated $10.6 million in assets against nearly $153 million in liabilities in bankruptcy, has claimed he worked for Trump on impeachment-related matters pro bono. However, he reportedly mentioned expecting payment of $20,000 a day for his services on Trump’s behalf.
The bankruptcy was initiated following a ruling against Giuliani for falsely accusing Georgia election workers of election fraud. Giuliani has vowed to challenge the judgment. Additionally, he is embroiled in multiple lawsuits, including a defamation case by Hunter Biden and a sexual harassment lawsuit by former associate Noelle Dunphy.
The legal case is identified as In re Rudolph W. Giuliani, Bankr. S.D.N.Y., No. 23-12055, 3/6/24.