Rudy Giuliani faces potential liquidation of his Palm Beach, Florida residence, valued at $3.5 million, as creditors seek to offset his debts through bankruptcy proceedings.

Giuliani, who filed for Chapter 11 bankruptcy, owns two residences, per a Friday filing in federal court. One is his $6.5 million primary apartment in New York, which Giuliani had put up for sale last summer but took off the market in February. Per court filings, Giuliani’s New York apartment is an exempt asset because it is his main residence. Then there is his $3.5 million Florida condo, which is not exempt.

Creditors, who describe the condo as a “luxury building with amenities such as a resort-style pool and outdoor lounge area,” said the building is key to helping Giuliani satisfy their claims because he insists he has so few assets. The filing was first reported by Politico’s Kyle Cheney.

“On several occasions, the Debtor has emphasized his limited assets available for distribution to creditors — according to the Debtor’s counsel, ‘there’s no pot of gold at the end of the rainbow,'” the filing said. Even if he does try to say that he is entitled to live in Florida, creditors wrote, his argument falls apart because Giuliani has previously told the court he spends most of his time in New York City. “Any proposal by the Debtor to both claim a New York State homestead exemption for the NYC Apartment and retain his nonexempt multimillion-dollar Florida Condo cannot withstand legal scrutiny,” his creditors argue.

However, Giuliani has not taken any steps to sell the Florida home, the filing says. Meanwhile, he’s been spending what little money he does have on $8,416 a month in “maintenance fees” for the condo instead of paying his debts. Creditors called it a “drain on estate resources.”

His condo was previously placed under a federal tax lien of over $550,000 in late 2023, CNN reported at the time.

Giuliani’s creditors also asked that he purchase homeowners insurance on the Florida and New York properties, saying the lack of protection puts creditors at a “great risk” should something happen to either home.

Giuliani — swamped with legal fees from civil suits and his RICO charges in Georgia — filed for bankruptcy in December. The most notable of his financial liabilities is the $148 million judgment for Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss, which a court found him liable of defaming. However, legal experts previously told Business Insider that bankruptcy won’t get him off the hook for that particular judgment.

Lawyers for Giuliani and creditors did not immediately respond to a request for comment from BI.