Is Donald Trump Facing Bankruptcy?

By Gamal Khattab February 19, 2024 2048

A Report Raises Concerns

A report in the Swiss newspaper Le Tan has brought attention to the potential consequences that former US President Donald Trump may face after being hit with a hefty fine by a judge in New York.

What Are the Penalties?

The report by journalist Simon Pettit reveals that a US judge in New York has fined Donald Trump $355 million for inflating the value of his real estate holdings. The total fine, including interest, amounts to $450 million. Additionally:

Trump is prohibited from operating any business in New York State for 3 years, and his sons Eric and Donald Jr. for 2 years.

The heirs were fined $4 million each.

Outside auditors have been appointed to oversee the operations of the Trump Organization.

Will Trump Go Bankrupt?

Despite the hefty fine, Trump has announced plans to appeal the ruling, which could take months or even years. However, he still must pay a significant portion of the fine in the meantime. The report suggests that Trump's real estate empire is not at risk of bankruptcy, as he could sell off properties to cover the costs.

 

One major concern for Trump is his lack of cash flow, particularly in paying his legal bills. He has spent millions defending himself in court over the past few years, relying on donations from supporters to cover the expenses.

Political Impact

The report notes that Trump's legal troubles have not significantly impacted his standing within the Republican Party. However, independent voters may be swayed by these convictions, potentially affecting the outcome of the presidential election.

While Trump is expected to secure the Republican nomination, his legal challenges could pose a hurdle with independent voters come election time.

Source: Lotan