Creditors Want Court to Force Giuliani to Insure His Florida Condo Until It’s Sold to Pay His Debts

Full-time Florida residents and snowbirds aren’t the only ones having trouble obtaining insurance on their condominiums. Rudy Giuliani, the former New York Mayor and longtime attorney for Donald Trump, has told a bankruptcy judge that he can’t afford to pay premiums on his Palm Beach condo.

That’s not good enough for some creditors who say Giuliani, facing a $148 million defamation judgment against him, should take immediate steps to protect the property until it can be sold. Creditors filed a motion in March, asking the judge for the U.S. Bankruptcy Court in Southern New York to force Giuliani to sell the condo and insure it in the meantime.

“The Debtor has chosen to avail himself of the protections of the Bankruptcy Code to obtain a breathing spell from his creditors, but in return he must exercise due care in protecting his assets and avoiding loss, since these are the assets that he, as a debtor in possession, is holding in trust for his creditors,” reads the motion by the Official Committee of Unsecured Creditors.

The condo at South Lake Drive is valued at $3.5 million, according to Giuliani’s asset listing in bankruptcy court. The creditors argue that the condo, less than mile from the Atlantic Ocean, is one of Giuliani’s most valuable assets. The Internal Revenue Service also had filed a lien on the property, seeking almost $550,000 in unpaid income taxes.

Giuliani filed for Chapter 11 bankruptcy protection in December after he was hit with the $148 million verdict for defaming two Georgia election workers that he claimed had committed fraud during the counting of 2020 presidential election ballots. Now, he contends that he has few assets available and cannot pay property insurance premiums on the Palm Beach spread.

The court filings did not indicate the premiums on the condo.