NewsFacing defamation payout, could financial woes push Trump towards 7th bankruptcy?

Facing defamation payout, could financial woes push Trump towards 7th bankruptcy?

Donald Trump
Donald Trump
Images source: © PAP | SARAH YENESEL

3:16 AM EST, January 28, 2024

The recent court decision regarding E. Jean Carroll's defamation case could cost Donald Trump $100 million along with part of his properties. This is the collateral for the bail on appeal.

As if this wasn't sufficient, Trump has another civil fraud trial looming, initiated by the Attorney General of New York - Letitia James, and a verdict is expected in a few days.

Ciara Torres-Spelliscy, a law professor at Stetson University College of Law, stated in an interview with "Newsweek," combining these two cases could potentially drive Trump to bankruptcy.

Only Trump truly knows his finances, but the combination of the civil fraud case in New York and E. Jean Carroll's cases could culminate in a double impact leading to bankruptcy. However, I doubt if former President Trump would wish to declare bankruptcy in an election year - said Torres-Spelliscy in an interview with "Newsweek".

Harry Litman, a former Assistant United States Attorney for the Western District of Pennsylvania and a former Deputy Attorney General in the Justice Department, also commented on possible financial inconsistencies in Trump's circumstances in a recording on the X service.

This wouldn't be the first instance of Donald Trump filing for bankruptcy. He's done so six times, even though he acknowledges only four, as he counts the initial three bankruptcies as one.

What is Donald Trump's financial standing?

The former president openly claimed to have a wealth of 400 million euros. While it's not entirely unusual for the cash in question to play a role, experts are curious about how many shares he possesses in some of the real estate properties:

To secure appeal bail, Trump is likely going to need to deposit most or all of a total of $83 million to ensure the sum is accessible to pay E. Jean Carroll at the end of the appeal process. Trump will need to settle it either in cash - didn't he once brag about having $400 million at-hand? I presume not, as he would then need to dispose of a debt-free property - commented Glenn Kirschner, a former Assistant United States Attorney, who also serves as a legal analyst on MSNBC.

However, according to lawyer Bradley Moss in a previous discussion with "Newsweek," although this issue is beyond his expertise, he highly doubts that it would lead to Trump's bankruptcy, given his reported wealth.

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