Filing for Bankruptcy and still spending $120,000 a month

[Anonymous]

I don't understand how declaring bankruptcy in federal court allows you to have a $43K/month budget let alone a $120K/month budget? And for an attorney to disregard committments to the court...

https://www.nytimes.com/2024/05/01/us/politics/bankruptcy-giuliani-spending.html

Besieged by creditors and with his income drying up, Rudolph W. Giuliani laid out an austerity program of sorts in January for a federal bankruptcy court.

He would stick to a $43,000-a-month budget, he said in court filings, roughly in line with the income he drew from his retirement accounts and Social Security. That amount would cover, among other expenses, $5,000 in alimony payments to his ex-wife Judith Giuliani, $1,050 for food and housekeeping supplies and $425 for “personal care products and services.” He was also obliged to cover $13,500 in monthly nursing-home expenses for his former mother-in-law; she died in March.

Suggesting that he was mindful of the $153 million he owes to creditors, including two Georgia election workers he defamed in the aftermath of the 2020 election, he budgeted nothing for entertainment, clubs and subscriptions.

It did not take him long to blow his budget. In another bankruptcy filing, he said he actually spent nearly $120,000 in January. The accounting of his spending that he provided to the court was spotty and incomplete. He later provided more information to the creditors’ lawyers, listing 60 transactions on Amazon, multiple entertainment subscriptions, various Apple services and products, Uber rides and payment of some of his business partner’s personal credit card bill.

[Anonymous]

Social security and retirement accounts are generally protected from bankruptcy, so if that is the source of his income, it is likely untouchable.

Because of his age he can draw a lot from his retirement account according to actuarial tables.

[Anonymous]

I’d be more interested in where that 120k/month went. It didn’t go where he said it went. He could cover Uber and Apple subscriptions for the entire town I live in on that bill.

[Anonymous]

He LIED? But that can’t be! /s

[Anonymous]

Anonymous wrote:He LIED? But that can’t be! /s

This issue isn't that he lied. It's that he's bankrupt and still spending monthly 3x the annual Household income in the USA .

[Anonymous]

An expense for paying off someone else’s credit card bill sounds … unreasonable.

[Anonymous]

This article isn't saying he's spending $120,000/month - it just said he spent $120,000 in January.

[Anonymous]

Anonymous wrote:Social security and retirement accounts are generally protected from bankruptcy, so if that is the source of his income, it is likely untouchable.

Because of his age he can draw a lot from his retirement account according to actuarial tables.

The income is untouchable, but the second it hits a bank account it's fair game

[Anonymous]

Anonymous wrote:He LIED? But that can’t be! /s

I can’t imagine he didn’t report his legal fees which are likely extensive.

Representing yourself only works in small claims court.