As the deadline for depositing $454 million for the fine weighing on former U.S. President Donald Trump looms, people are curious about how he will pay off this debt. Through his legal team, he has expressed that paying the deposit is realistically impossible, but according to his close associates, he is not considering bankruptcy.
According to foreign reports, including the Washington Post (WP) on the 20th (local time), Trump must pay the deposit needed for an appeal by the 25th after losing the first trial of the “asset inflation” civil lawsuit. The deposit is more than the first trial fine of $454 million. New York Attorney General Letitia James can seize his real estate and other assets if Trump does not pay the deposit by the 25th.
The Trump’s camp claims they do not have the cash to pay the full deposit and are asking for a suspension of the fine or a deposit reduction to around $100 million. They said they had requested guarantees from 30 insurance companies for fundraising but were rejected. Insurance company Chubb Group faced criticism from investors and customers for providing a guarantee for a deposit of over 100 billion KRW (approx. $74 million) for Trump’s appeal in a sexual assault defamation case. The WP pointed out that “no bond company would accept most of Trump’s assets, which are real estate, as collateral.”
Some financial experts suggest that he could resolve his financial problems, which are currently holding him back, by filing for bankruptcy, which would delay the execution of the fine. Suppose Trump files for bankruptcy and admits he cannot pay. In that case, the court will have to enter a procedure to determine the priority among his creditors, including the state court. This process could take several years, meaning Trump could be free from the fine issue until at least the presidential election.
However, the WP reported, citing multiple officials, that Trump is not considering bankruptcy. While bankruptcy could solve his immediate cash shortage, it could be detrimental to his presidential campaign strategy, as he has always portrayed himself as a “successful businessman.”
Some insiders suggest that he might not pay by the deposit deadline of the 25th and instead pass the ball to the prosecutor’s side. One source told the WP, “Rather than saying he’s bankrupt, Trump would choose to have Attorney General James pour criticism on him with bailiffs at his Wall Street building.” The source added, “He thinks that’s politically advantageous for him. Bankruptcy is unfavorable for him, but he could benefit from Attorney General James trying to seize his assets.”
Attorney General James stated that she would not hesitate to seize his buildings, including the “Trump Building,” if Trump did not pay the deposit. In a document submitted to the appellate court on the same day, she said, “The request to suspend the execution of Trump’s fine is full of unreliable claims,” and pointed out that “there have been many successful cases of securing bonds in the past.”
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