Former US President Donald J. Trump speaks after a hearing before one of the trials against him.
Photo: EFE – David de Delgado
Donald Trump He has a problem that many of us have: he’s short on cash and has a lot of debt to pay off.
Last Friday, Judge Arthur Engron ordered the former president to pay $354 million to the state of New York because his family business, the Trump Organization, committed civil fraud.
This is in addition to the US$83.3 million awarded to author E for defamation after a trial that ended in January. Jean Carroll has to pay. Over US$430 million owed in these two cases alone.
In April of last year, Trump said he had about $400 million in cash at the time and boasted that it was “a lot.” But that may not be enough for him, considering the fines already presented, he may incur, the sums he needs to cover other legal expenses and his campaign expenses, in addition to the debts he has accumulated with banks to sustain him. flag hoisting..
For all this, the media today emphasizes one question: How are Donald Trump’s accounts? Are you able to pay what you owe?
Let’s start with the first thing: money problems are not new for Trump. In the 1990s, when he first considered running for president, he declared two of his companies bankrupt. There were two other similar filings in the 2000s, although there were never individual bankruptcy filings. According to Banktrupcy.com, he is the millionaire who has filed for bankruptcy the most times.
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The current crisis appears to be as severe as in previous decades. Here’s what’s known about Trump’s debts, as far as fines he owes for a recent trial:
This gives us a sub-total of about US$542 million associated with just the two mentioned cases. On the other hand, it was also reported last year that Trump must:
Before talking about the other debts you may incur in the coming months, let’s address these concerns.
There is no specific date, as the former president’s appeal is still pending.
In Carroll’s case, of the US$83.3 million, Trump must deposit the money owed to him in a court-controlled account in a very short period of time. The money will remain there until an appeals court reviews an appeal that Trump has already said he’s going to file. You may have the ability to pay only part, but that option means you pay interest.
In the civil fraud case, Trump must wait for a court to determine how much he must contribute before preparing his appeal. Once the outcome of the appeal is determined, you must pay the full amount immediately.
There is always the option of requesting a deposit and committing to pay the money later, but you will still have to pay 10% of the balance (about US$54 million) and it will cost you more with the added interest that this option demands. .
If Trump doesn’t pay, he faces the possibility of having his assets or wages garnished, just like any American. Now, it should be noted that some amount may be reduced after appeal.
Because receipts from damages awards in these cases, plus other related costs, exceed the amount of cash Trump says he has in cash — which may be less than the $400 he has — the former president must study options.
According to Michael Cohen, Trump’s former lawyer, the amount owed to his former client is not cash. According to him, Trump is considering using donation funds from his campaign to cover these legal expenses.
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“Maybe what you’re doing involves Republican National Committee (RNC) money or Political Action Committee (PAC) money that’s in savings accounts that aren’t yours. He has a very interesting way of looking at money, and the way he looks at it is that if his name is somehow associated with it, it is available to him. He’s not in good health and he hasn’t,” Cohen told MSNBC.
Unlike other legal expenses, such as paying lawyers to fight his case, Trump will not be able to dip into the RNC fund for his legal expenses. The laws regarding PACs are a bit vague, but here comes the election mess. In 2023 alone, Trump spent nearly $50 million on legal advice, lawyers and other related expenses from donors. Over the past two years, he has accounted for 84% of one of his committee’s expenses, according to the Associated Press. That money should go to his campaign.
As expenses mount, the former president’s fundraising ability becomes more demanding, as he has two fronts to defend: his legal affairs and his campaign, which also demands more cash. It must be taken into account that for his 2020 campaign, Trump spent US $ 710 million. That’s a big amount, so if you want to win, you can’t continue to use your campaign funds as your petty cash.
Cohen has said that, faced with liquidity problems, he will have to start liquidating his assets. According to The New York Times, this is already being done sensibly. Investigative journalist Suzanne Craig said the former president has sold properties such as a golf course in the Bronx in New York or a hotel in Washington that he got rid of in 2021. According to Craig, it’s their way of raising cash.
Trump’s accounts don’t look good. According to Forbes, the current debts added to the debts of his companies were close to US$1.3 billion in 2021. And he still has legal cases to settle, which could mean more debt. That is why Abdallah Fayyad, the correspondent of VoxThe question arises whether it would be positive to have a presidential candidate with so much debt.
“Trump’s income and lack of transparency really matters,” Fayyad wrote.
“An individual with access to classified US information because of massive financial debt is a counterintelligence risk because of the influence the debt holder has over the individual. And influence can be used to encourage actions, such as disclosing information or influencing policy, that compromise US national security,” David Criss, former head of the Justice Department’s National Security Division and founder of consulting firm Culper Partners, told the magazine. was Time In 2020.
After four years, the exam is revalidated.
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