Rudy Giuliani’s creditors may join forces to collect following bankruptcy bid (Exclusive)

Rudy Giuliani, former mayor of New York, faces a growing group of creditors who may soon have the capacity to scrutinize every dollar he spends, if they are successful in forming an unsecured creditors committee, the Daily News found out on Tuesday. The assortment of creditors includes a dismissed grocery store worker from Staten Island, voting machine firms, Giuliani’s ex-assistant, and various prominent law firms. They all claim to want to retrieve their debts from the former mayor.

As per the documents acquired by The News, Federal bankruptcy officials notified those claiming the biggest amounts about their rights to set up an unsecured creditors committee on Dec. 22. Andrea Schwartz, a trial attorney from the Office of the U.S. Trustee, recommended them to consider participating in the committee, emphasizing its crucial role in Chapter 11 reorganizations.

Giuliani, who recently turned 79, filed for bankruptcy protection in Manhattan on Dec. 21, shortly after a jury concluded that Georgia election workers - Ruby Freeman and Wandrea “Shaye” Moss - were owed money by Giuliani for falsely accusing them of fraud. His spokesperson stated that nobody could have rationally assumed he could pay. Giuliani's debts are as high as $500 million, while his assets range between $1 million and $10 million.

The IRS and New York tax authorities, to whom he owes almost $989,918 in income tax from 2021 and 2022, are assigned priority. The remaining creditors are mainly comprised of individuals and businesses who have filed lawsuits against Giuliani on accounts from defamation to sexual assault, and law firms claiming unpaid bills. These creditors combined are demanding an enormous amount of $151,787,859.98. Giuliani refutes all charges.

Appointments to the committee included Daniel Gill, a former ShopRite employee who accused Giuliani of assault, and the law firm of Bob Costello, Giuliani's longtime legal advisor. Costello's firm is suing Giuliani for nearly $1.4 million in unpaid legal funds.

Attorneys representing Hunter Biden, President Biden's son, voting machine companies Smartmatic and U.S. Dominion, and several entities suing Giuliani did not confirm if they had applied to join the committee. Arthur Aidala, a lawyer who is owed $387,859.98 by Giuliani for unpaid legal fees, declined to clarify if his firm will apply to join.

The select committee members will have the ability to make sure Giuliani is doing everything possible to pay his dues. Committee responsibilities might include probing his business transactions, requiring him to consult them before making significant decisions, and participating in restructuring his assets. They could potentially request a judge convert the Chapter 11 filing into a Chapter 7 filing, which could lead to Giuliani's assets being liquidated.

Giuliani, who is also separately facing criminal charges with Donald Trump and 17 others for allegedly plotting to overturn the 2020 presidential election results in Georgia, has pleaded not guilty. All civil litigation against the former mayor has been halted. He did not provide a comment when contacted by The News.