Is Trump able to pay? What occurs in the event that he does not? The following information pertains to Trump’s extensive civil judgments

Anjali Jain
Republican presidential candidate former President Donald Trump speaks at his Mar-a-Lago estate, Friday, Feb. 16, 2024, in Palm Beach, Fla.

— NEW YORK A verdict in the seven-figure, eight-figure, and now nine-figure ranges.
In the past nine months, Donald Trump has been struck with all three, with the $354 million penalty for New York business fraud levied against him on Friday being by far the most catastrophic.
Currently, he is obligated to pay civil judgments exceeding $440 million as he pursues the Republican nomination and readies himself for one or more criminal trials this year.

The aforementioned criminal charges have the potential to land him in a prison. Moreover, his civil cases, which are intensifying, are carrying an irreparable financial wallop.
Despite the individual’s self-proclaimed billionaire status, the sum of $440 million is a potentially insurmountable deficit. Is Trump financially capable of bearing the judgments? When is the due date for his payment? What occurs if he expressly declines or states that he is unable to do so?
The following describes what will occur next.

Trump may be unable to pay
Since Trump has notoriously refused to disclose his tax returns and his company is not publicly traded, his financial flow situation is shrouded in mystery.
Paying the judgments could wipe out his accounts, even if he has $440 million in cash on hand, which is highly improbable given that Trump has estimated his cash reserves to be around that amount.
Last year, Trump stated in a deposition that he possessed cash on hand that was “significantly greater than” $400 million.
A $354.9 million penalty was imposed on Trump in a civil fraud case.
“We have over 400 employees, and that number is increasing significantly each month,” he said, adding, “Unfortunately, legal fees are my largest expense.”
However, the accuracy of that number remains uncertain. In fact, that deposition was a component of the litigation in which a judge determined Trump to have consistently overstated his wealth.
If he lacks sufficient liquid assets, would he be compelled to liquidate properties?
Trump would almost certainly be required to sell something, though property is not a prerequisite. Other assets or investments could be sold by him.

What proceeded with his non-payment?
If Trump is unable to post the required funds or obtain a surety in the civil fraud case currently pending in New York state court, the judgment would be executed without delay and a bailiff could commence the process of seizing Trump’s assets.
The regulations differ marginally in federal court, where Trump is liable to pay a $83.3 million judgment for defaming author E. Jean Carroll subsequent to her allegations of rape. (Another $5 million is owed to Carroll as a result of a separate judgment from the previous year.) Carroll was permitted to request post-judgment discovery in accordance with the authority of the trial’s presiding judge. The judge could compel Trump to provide his bank account records, garnish his wages, or levy liens through this procedure.
“I believe he will be required to make a payment. And obtaining a loan does not necessitate that he sell or place a security on anything; that is his concern, not ours. Last month, Carroll’s counsel Roberta Kaplan stated on CNN, “He is going to pay.”
“Assure him that he pays,” the judge will employ “judgment enforcement mechanisms,” according to Kaplan.
The judgments would force Trump to declare bankruptcy if he could not afford them.

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May Trump postpone payment through an appeal of the verdicts?
No. While appealing the verdicts, he is required to place funds in an escrow account with the court or post a surety in all three instances.
The civil fraud judgment, which Trump has declared his intention to appeal, establishes the court-determined amount that must be posted or bonded. Typically, an additional 120 to 125 percent of the judgment amount is set aside to accommodate post-judgment interest that accrues throughout the appeal process.
In response to the Carroll verdict from the previous year, which Trump has since filed an appeal of, he transferred to the court $5.5 million, representing 111% of the judgment.
An appeal of the more recent Carroll verdict, which Trump has also declared, would amount to $92.46 million, or 110% of the judgment. Trump has thirty days from the verdict on January 26 to deposit cash into the court’s escrow or post a surety in anticipation of his appeal. In addition to providing collateral and a 20 percent deposit ($16.66 million), he may be required to pay interest and fees, which could increase the overall cost over time. Additionally, Trump would have to locate a third party willing to lend him money despite the inherent risk involved.

Is he personally obligated to pay the judgments? Could he secure funding from his campaign, PAC, or the RNC?
The courts do not impose limitations on the origins of funds utilized to satisfy judgments, and it is highly probable that Trump would prefer to utilize funds other than those contained in his personal accounts.
He might be able to transfer Trump Organization assets to himself to assist in the satisfaction of the judgments.
Paying with his political vehicles would be an entirely different matter. The utilization of campaign contributions for personal gain, unrelated to a campaign or the official responsibilities of an officeholder, is generally prohibited. Regarding his political action committees, Richard Pildes, a constitutional law professor at New York University School of Law, stated that they are unable to pay Trump’s judgments.
“Regardless of whether the PAC is the decision-maker, campaign funds cannot be utilized for that purpose,” he emailed.
In addition, the judgments may be beyond the financial means of Trump’s PACs, as he has been using them to pay the numerous attorneys who have represented him in criminal and civil proceedings.
In the latter half of the previous year, two of Trump’s PACS expended a combined sum of $29 million on legal consulting and expenses, leaving his leadership PAC with a meager $5 million in remaining funds.
While the Republican National Committee is not subject to the same prohibition on the personal use of funds as Trump’s campaign committee, financing Trump’s decisions could compromise its status as a non-profit organization.

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Hello, I'm Anjali Jain, a passionate writer navigating the dynamic realms of entertainment, politics, and technology. My blog serves as a digital canvas where I explore the intricate threads that weave together these diverse spheres, offering readers a comprehensive and engaging perspective. Entertainment Aficionado: As an avid consumer of all things entertainment, I delve into the worlds of movies, television, music, and more. Through my blog, I share insightful analyses, reviews, and behind-the-scenes glimpses into the ever-evolving landscape of pop culture. Political Explorer: I'm not one to shy away from the complexities of the political arena. From local issues to global affairs, my writings aim to unravel the intricacies of political events, fostering meaningful conversations about the societal impact of policy decisions. Tech Enthusiast: With an insatiable curiosity for technology, I keep my readers abreast of the latest innovations and trends in the tech world. My articles break down complex concepts, making technology accessible and exploring its profound influence on our daily lives. Narrative Architect: Through my writing, I craft narratives that bridge the gap between entertainment, politics, and technology. Each blog post is a journey, offering readers a thought-provoking exploration of the forces shaping our world. Join me in unraveling the stories that define our culture. Connect with me on Facebook, Instagram and X for real-time updates, discussions, and a shared passion for the fascinating intersection of entertainment, politics, and tech.
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