Legal Analyst Argues Fraud Ruling Could Force Trump Into Bankruptcy

On Thursday, MSNBC legal analyst Lisa Rubin argued that the former president might not be able to escape the hundreds of millions of dollars levied against him — unless he files for bankruptcy.

Huge ruling

Rubin was responding to the ruling of Judge Arthur Engoron, who ruled that Trump must pay over $450 million for years of fraudulently misrepresenting the value of his assets.

Only getting bigger

While Trump has vowed to appeal the ruling, every day that passes adds another $87,000 in interest to the already massive fine.

No escape

As Rubin explained, Trump “can’t escape this just by plunging those business entities themselves into bankruptcy.” That’s because Engoron found those businesses liable for the yearslong campaign of fraud.

Poor decision

If Trump did attempt to put his businesses into bankruptcy, Rubin explained, “that would leave him individually on the hook for the totality of it.”

Basic fact

close up of conference meeting speacher gestures. Politician, businessman, law — Image by Depositphotos.com

“In this order Donald Trump and the business entities that were found liable, are jointly and severally liable,” Rubin explained. “That means that any one of them can be liable for the whole of the judgment attributed to them.”

Only option

According to Rubin, the “only way to escape it all together would be to file for personal bankruptcy, which would place an automatic stay on further litigation, including judgment execution.”

Seeking assistance

Illustration. Image by Depositphotos.com

Rubin worried that Trump might look to foreign governments and dark money organizations to raise the funds needed to pay off this judgment. “I asked the Attorney General’s office early this week, ‘Would we know, as the public, who loans following Trump this money to him? Would you even know, as the Attorney General’s office?’” Rubin said.

Unsure

Close-up Of A Male Lawyer With Arms Crossed In Office

According to Rubin, the Attorney General’s office responded by saying, “We are not clear on that.”

Next steps

Trump now has to pay the full amount to the court, which will hold it while he fights for the sum to be lowered. He could also purchase a bond, which would mean paying a small amount of the sum up front.

Immense payment

According to calculations by the Associated Press, Trump’s interest payments on the fine amount to $32 million a year. The interest accruing each day is more than many New Yorkers make in a whole year.

Barred from action

As well as the fine, Trump has been banned from borrowing money from financial institutions registered in New York. The former president was also banned from serving as an officer or director of any corporation in the state for three years. His sons, Eric and Don Jr., were banned for two years.

Additional fees

In addition to the massive fraud fine, Trump was ordered to pay writer and journalist E. Jean Carroll $83.3 million for defaming her. That judgment joined one issued in 2023 which found Trump liable for sexually assaulting Carroll and ordering him to pay her $5 million for other defamatory comments.

Fire sale

According to the New York Times, Trump will likely not be able to pay the roughly half-billion dollars levied against him in these cases. At least, not without selling off some of his property empire.