As the former president tries to beat time with limited options as the March 25 deadline closes in to shell out nearly $500 million after he lost his civil fraud case brought by New York Attorney General Letitia James — he is determined to do anything and everything to avoid filing Chapter 11, according to The Washington Post citing multiple sources.
“He’d rather have Letitia James show up with the sheriff at 40 Wall and make a huge stink about it than say he’s bankrupt,” a close Trump source told the outlet. “He thinks about what is going to play politically well for him. Bankruptcy doesn’t play well for him, but having her try to take his properties might.”
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The outlet noted that the bankruptcy could give Trump a reprieve as it would delay for month and possibly years his mandate to pay back the substantial damages imposed by Manhattan Supreme Court Justice Arthur Engoron mid-February that has accrued interest by $100,000 each day.
Trump's campaign spokesman said: “This is a motion to stay the unjust, unconstitutional, un-American judgment from New York Judge Arthur Engoron in a political Witch Hunt brought by a corrupt Attorney General. A bond of this size would be an abuse of the law, contradict bedrock principals of our Republic, and fundamentally undermine the rule of law in New York."
Bankruptcy would also reportedly in a federal judge to help remit and make good all of Trump's creditors and give the GOP presumptive nominee bandwidth to put his energies toward stumping to win back the White House.
So far, Trump's attorneys say that he is struggling to come up with the bond to bankroll the $464 million judgment while he's appealing and a bonding company hasn't been willing to accept his real estate holdings as collateral.
Without an extension, him winning appeal, a substantial lowering of the amount, or a white knight swooping in to save the day —AG James could end up moving forward to seize his assets, including his bank accounts.
“His next best bet is to find a liquid billionaire and do a quick buy-and-sell arrangement with him or her,” longtime finance attorney Richard Porter, a member of the Republican National Committee told The Post. “Then, if I’m advising that billionaire, I’m saying the upside is you can make some money and make friends with a guy who is likely to be president. The downside is, you will be targeted if he loses."
