Attorneys have cautioned that former President Donald Trump’s ongoing defamation case brought by E. Jean Carroll, combined with potential damages from his civil fraud trial, could potentially drive him to bankruptcy. The second defamation trial against Trump, initiated by Carroll, began last week. In May 2023, Carroll was awarded $5 million in damages by a jury for sexual abuse and defamation by the former president. Trump has denied the allegations and labeled Carroll’s account as “fake” during a town hall broadcast.
Carroll’s lawyers are seeking “substantially more” in damages as Trump continues to deny the assault accusations, claiming Carroll was not his “type.” Legal experts have suggested that if Trump is forced to pay high damages, he may face bankruptcy. Former litigator Gene Rossi stated that the damages from this trial could be significant and that collecting the judgment from Trump could be a challenging task for Carroll.
Matthew Mangino, a former district attorney, believes the judgment could potentially reach nine figures. Trump’s net worth, estimated at around $2.6 billion, has not been publicly disclosed. However, experts argue that a combination of the ongoing civil fraud case and the Carroll defamation case could potentially trigger bankruptcy for Trump. Ciara Torres-Spelliscy, an associate professor of law, also noted that a bankruptcy filing would reveal Trump’s debts and creditors, which he may want to hide from voters.
While some experts doubt that the case would bankrupt Trump due to his assets, others point to previous high-profile defamation cases that resulted in significant damages. For instance, in 2023, Dominion Voting Systems received a $787.5 million settlement from News Corporation over defamation claims. Infowars founder Alex Jones was ordered to pay $1.438 billion in damages to Sandy Hook victims’ families, leading to personal bankruptcy for Jones and his company.
Bankruptcy, if chosen by Trump, could provide a temporary freeze on debt collection attempts and allow him to develop a repayment plan. However, it may also impair his credit rating, making it challenging to obtain loans or purchase property in the future.
Please note that this article is not considered breaking news and does not involve true crime or a police chase.