As Donald Trump faces Monday’s deadline to post $454 million bail in his civil fraud case in New York, officials are considering the less-discussed option of doing nothing. He said that there may be
The former president has reportedly struggled to raise bond financing from banks and wealthy friends, and his lawyer argued on Monday that it was “practically impossible.”
Some reports have speculated that President Trump may “go nuclear” by filing a Chapter 11 filing to protect his real estate assets across Manhattan, but experts said bankruptcy would create unwanted complications as the 2024 election season approaches.
“He’s been there, he’s done that,” said a source close to President Trump, dismissing the possibility of filing under Article 11 of the U.S. Constitution.
However, a third possibility is that, past the deadline, New York State Attorney General Letitia James may have access to President Trump’s bank accounts and buildings, including Trump Tower, where he announced his 2016 presidential bid, and his personal penthouse. The plan is to entrust the seizure of buildings (famous for their construction). .
Friends say President Trump may have considered this, in part because he would likely be able to recover his assets on appeal, even if he was forced to go to the U.S. Supreme Court. He says it’s because he believes in it.
“Even if there’s a cancellation, it doesn’t mean you can’t take it back later,” a source close to Trump told the Post.
The decision to do nothing poses its own risks. These include that the New York state office has the right to sell the forfeited property to recover cash penalties owed.
“They’re after the money. That’s all he’s entitled to get back, not the building, unless the judgment is overturned before the sale,” said Adam Reitman Bailey, a New York-based lawyer specializing in commercial real estate. said. Real estate sector.
Sources close to Trump say the former president believes he has a strong case. Among other considerations, if the decision is not reversed, “it will have a chilling effect on people doing business in New York because it could happen to anyone,” the people said.
“There will be serious consequences, not riots. People will stop doing business in New York. No one wants to take risks and lenders are scared now. The real estate market is already in a state of disaster. Office buildings are now worth a fraction of what they once were, and a large portion of the city’s budget comes from real estate, so there’s a ripple effect.”
A person close to Mr. Trump has argued that Mr. Trump could raise money from wealthy “friends and supporters,” but so far he has not chosen that path.
“He’s not a ‘pass the hat’ kind of guy. He doesn’t want pity or anyone to take pity on him,” the source claimed. “He’ll do what he has to do. He has a lot of wealthy friends who would help if asked, but as far as I know he hasn’t asked.”
