Judge threatens to sell Giuliani's NYC apartment after he fails to pay bankruptcy costs

A federal judge said that Rudy Giuliani's bankruptcy has not been officially dismissed because the former New York City mayor has refused to pay administrative expenses — even though he seems to have the funds to do so.

In July, U.S. Bankruptcy Judge Sean Lane said he would dismiss the bankruptcy case at the request of Giuliani and two former Georgia election workers, Ruby Freeman and Shaye Moss. Giuliani had initially declared bankruptcy after a court ordered him to pay Freeman and Moss $148 million for defamation.

In a five-page order on Thursday, Lane noted that the order to dismiss the case had not been entered into the court record because Giuliani claimed he could not afford to pay related administrative expenses.

"The administrative expenses in question are the fees for the financial advisors retained by the Official Committee of Unsecured Creditors," the judge's Thursday order said. "What little we know about the Debtor's financial situation makes his stance here more troubling."

"Even assuming that the Debtor does not have the funds on hand to immediately pay these bankruptcy expenses, he certainly has considerable assets upon which he can draw to pay such expenses," Lane continued. "It is undisputed that he owns two apartments of considerable value."

Giuliani's New York apartment was said to be worth $5.6 million, and his Florida apartment was valued at approximately $3.5 million.

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Lane explained that the "most obvious path forward" would be to hold hearings to determine Giuliani's financial conditions and possibly force him to testify.

"[T]here may come a point when dismissal is no longer an option because the Debtor is unwilling to pay these administrative expenses, a necessary requirement under the law for dismissal of the case," Thursday's order said. "Under such circumstances, the Court may be forced to reevaluate the alternative of a Chapter 11 trustee to supervise the administration of the Debtor's financial affairs and to promptly liquidate assets such as the New York apartment as appropriate."

Lane gave Giuliani and his creditors until July 31 to submit proposals for a path forward.