There are different types of bankruptcy, for both businesses and individuals. One form of bankruptcy occurs when you plan to pay your creditors but need the courts help to consolidate and set terms because you have too many creditors or terms you can’t comply with. There is also a kind that allows you to discharge certain types of debt.
I’d have to look into it but I’m guessing Giuliani is filling the structuring his debt kind because he owes dramatically more than he is worth. His debt likely can’t be fully discharged in bankruptcy, but a judge can allow for the orderly sale of assets and structuring of payment, rather than a repossession frenzy.
Edit: he filed for chapter 11, which is the kind that will restructure his assets and set up a payment plan to his creditors, including the recent legal judgements against him.
There are different types of bankruptcy, for both businesses and individuals. One form of bankruptcy occurs when you plan to pay your creditors but need the courts help to consolidate and set terms because you have too many creditors or terms you can’t comply with. There is also a kind that allows you to discharge certain types of debt.
I’d have to look into it but I’m guessing Giuliani is filling the structuring his debt kind because he owes dramatically more than he is worth. His debt likely can’t be fully discharged in bankruptcy, but a judge can allow for the orderly sale of assets and structuring of payment, rather than a repossession frenzy.
Edit: he filed for chapter 11, which is the kind that will restructure his assets and set up a payment plan to his creditors, including the recent legal judgements against him.