Former President Donald Trump is facing a significant financial challenge as New York state moves to collect over $457 million from him in his civil business fraud case. The state Attorney General, Letitia James, secured a judgment against Trump, who is appealing the verdict that led to the substantial debt. While James initially refrained from enforcing the judgment to allow Trump time to seek a reprieve from paying, that grace period is set to expire on Monday.
James has indicated that if Trump is unable to pay the debt, she will pursue seizing his assets to ensure the judgment is settled. This could potentially include properties like Trump Tower, aircraft, his Wall Street office building, or golf courses, as well as his bank and investment accounts. Trump has claimed to have nearly $500 million in cash but stated his intention to allocate a significant portion to his presidential campaign.
The legal process of seizing and selling off assets to satisfy a civil court penalty is complex, particularly in Trump's case due to the magnitude of his holdings. Real estate law experts note that finding buyers for such high-value assets is a time-consuming endeavor that may not yield the full value of the properties.
Trump's debt stems from a civil trial last fall where the state alleged that he and his company inflated his wealth on financial statements to deceive lenders and insurers. The court ruled in favor of the attorney general, ordering Trump to pay $355 million plus accruing interest. While some co-defendants were also held liable for smaller amounts, Trump faces the bulk of the financial penalty.
Despite filing an appeal, Trump has been unable to halt enforcement of the judgment without posting a bond covering the owed amount. His legal team has argued that meeting the bond requirement is unfeasible as it would tie up a substantial portion of his assets, hindering his ability to run his business effectively.
