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HomeAuslandImpending Court Decisions: Will Trump Have to File for Bankruptcy Soon?

Impending Court Decisions: Will Trump Have to File for Bankruptcy Soon?

According to statements from attorneys to ” Newsweek“, the defamation lawsuit by journalist E. Jean Carroll could drive the former President of the USA to financial ruin, particularly in combination with potential damages from his civil fraud case.

New Multi-Million Dollar Damage Claim

In May 2023, Carroll was awarded a $5 million damages payment after a jury found Trump guilty of sexually abusing and defaming her. Trump continues to deny having sexually harassed Carroll in a New York department store in the 1990s. Carroll’s attorneys are now seeking an additional $10 million in damages due to Trump’s continued denial of the allegations.

“It is possible that the jury may award Carroll ten million dollars or more,” said former Justice Department official Gene Rossi to Newsweek. “If the judgment is large enough, then the colossal task for Ms. Carroll to collect the money could indeed bankrupt Trump.”

Civil Fraud Case Could Be Pivotal

In addition to the Carroll case, Trump also has to contend with the civil fraud case initiated by New York Attorney General Letitia James. In September, Judge Arthur Engoron issued a ruling stating that Trump and executives of the Trump Organization had committed fraud. The former President allegedly overvalued his assets to secure favorable terms from lenders and insurers. The ex-President has appealed the ruling.

Ciara Torres-Spelliscy, a distinguished professor of law at Stetson University, agreed that a combination of this case and the Carroll case could drive Trump into bankruptcy. “The combination of the New York civil fraud case and the E. Jean Carroll cases could trigger bankruptcy,” she told Newsweek. “But I doubt that the former President Trump would file for bankruptcy during an election year.”

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