Giuliani Moves to Liquidate Assets to Pay $148 Million Debt (1)

Rudolph Giuliani moved to convert his Chapter 11 bankruptcy to a Chapter 7 liquidation, a move that could trigger a fundamental change in the former New York City mayor’s bankruptcy.

If Judge Sean H. Lane of the US Bankruptcy Court for the Southern District of New York approves the motion, filed Monday, a trustee would take over Giuliani’s estate. His assets would be liquidated to pay creditors, including two Georgia election workers to whom he owes a $148 million defamation judgment.

Giuliani’s creditors previously asked Lane to appoint a trustee to take over his bankruptcy, arguing that he’s filed late ...