Judge dismisses Rudy Giuliani's bankruptcy case, allowing collection of damages

A federal bankruptcy court judge dismissed Rudy Giuliani's bankruptcy case Friday, saying it is "in the best interests of creditors."

The decision exposes Giuliani to lawsuits, foreclosures and other measures that allow creditors, including two defamed Georgia election workers, to collect what they're owed by the former New York City mayor.

The decision followed months of missed deadlines by Giuliani, who evaded questions about his finances.

"The record in this case reflects Mr. Giuliani's continued failure to meet his reporting obligations and provide the financial transparency required of a debtor in possession," the decision said. "The lack of financial transparency is particularly troubling given concerns that Mr. Giuliani has engaged in self-dealing and that he has potential conflicts of interest that would hamper the administration of his bankruptcy case."

Giuliani filed for bankruptcy in December 2023 after a jury ordered him to pay nearly $150 million in fines and damages to former election workers Ruby Freeman and Shaye Moss for defaming them with false accusations that the mother and daughter committed election fraud while the two were counting ballots in Georgia's Fulton County on Election Day in 2020.

An attorney for Freeman and Moss said following Friday's ruling that they would seek to enforce the judgment against Giuliani.

"We're pleased the Court saw through Mr. Giuliani's games and put a stop to his abuse of the bankruptcy proceeding," said attorney Rachel Strickland. "We will move forward as quickly as possible to begin enforcing our judgment against him."

The dismissal will also allow Giuliani to appeal the defamation judgment.

"This whole bankruptcy case was burdened with many of the same voluminous and overly broad discovery requests and other actions -- including regular leaks of information -- intended to harm the mayor and destroy his businesses," said Giuliani's political adviser Ted Goodman, following the ruling.

"We will continue to pursue justice and we are confident that -- in the long run -- our system of justice will be restored and the mayor will be totally vindicated," Goodman said.

ABC News' Lucien Bruggeman contributed to this report.