Could Donald Trump go bankrupt?

He owes more than half a BILLION dollars.

Donald Trump owes more than a half billion in legal fees. Can he afford to pay them? Answers below! 👇

Here’s what Donald Trump currently owes in legal penalties:

• $454 million to the state of New York

• $88.3 million to E. Jean Carroll

• $400,000 to the New York Times

That’s $542 million. Which, is, um, a lot. (That’s a technical term.)

The real question here — in the wake of a series of adverse legal ruling for the de facto Republican presidential nominee — is actually two questions:

1. How much is Trump actually going to have to pay?

2. How much does Trump actually have?

Let’s answer those questions one at a time.

On the “how much does he have to pay” question, it’s bit complicated.

Trump has already put $5.5 million in escrow — the amount (plus interest) that he was initially told to pay Carroll following a jury decision that he was liable for sexually assaulting her. (Carroll alleged that Trump raped her in a high-end department store in the 1990s.)

Trump is faced with having to do the same for the $83.3 million he was penalized for defaming Carroll. If he doesn’t want to pay that large sum, there is another option. As the Associated Press notes:

“He could secure a bond and pay only a portion up front — though that option would come with interest and fees and likely require some form of collateral. Trump would have to find a financial institution willing to front him the money.”

Then there is the legal payment required in the wake of Judge Arthur Engoron’s decision Friday that Trump had knowingly committed fraud for decades by overestimating his assets to secure favorable loan conditions from banks.

Engoron said Trump is liable for $355 million — plus interest on that money. New York Attorney General Letitia James, who brought the case, said that the interest adds up to $99 million.

Trump will, of course, appeal that ruling. But, Trump will have to either a) come up with the total ($454 million) or secure a bond for the total within the next 30 days, according to the New York Times.

Which leads us to the second question: How much money does Trump actually have (and how much of that is in ready cash that he could pay off such large judgments against him?)

According to Forbes, as of September 2023, Trump was worth $2.6 billion. Most of that wealth is tied up in the various real estate properties he owns. Forbes also estimated that Trump had “cash/liquid assets” of $426 million.

That is broadly consistent with what Trump himself has said he has in cash. In an April 2023 deposition with James, Trump estimated that he had $400 million in cash — which he called “a lot for a developer.”

Which is, um, less than he currently owes. (Math!)

But, liberals should hold off rejoicing over Trump’s impending bankruptcy. Because, remember, that Forbes estimates that he is worth more than $2.6 billion. Which means he has the wealth to pay these fines — even if he doesn’t have the available cash on hand this minute.

So, how could Trump get the money he needs? A few ways:

1. Get a loan. It’s not immediately clear what financial institution would loan Trump several hundred million dollars after he was just found guilty of lying to banks about his wealth but, hey, who knows?

2. Sell stuff. Trump could sell stocks and the like or — and this would probably hurt him more — a building or three. (Forbes estimated that Trump has $690 million in New York City real estate.)

3. Raise the money. Trump can’t use money raised for his presidential campaign to pay legal bills and penalties but he CAN use money raised for affiliated super PACs to do so. Last year alone, Trump used $50 million(!) in donations to pay his legal bills.

So, Trump isn’t going to be declaring bankruptcy any time soon. But, there is NO doubt that the current legal penalties hanging over his head badly complicate his financial future.

Especially when you consider what else we know about Trump’s finances. Thanks to the New York Times, which got a hold of a decade’s worth of tax information for Trump, we know a few things.

First, Trump has benefited — hugely — from a $72.9 million tax refund that the Internal Revenue Service is currently auditing.

Second, Trump is personally responsible for more than $400 million in loans — the vast majority of which are set to come due by 2025.

Add it all up and it’s clear — even to this non-accountant — that Trump’s personal wealth is going to take a MAJOR hit.

Which is not an insignificant thing. As I have noted before in this space, Trump derives a huge amount of self-definition and pride from being wealthy.

It is WHO he is. It’s why he spends so much time inflating his wealth and talking about it.

Losing a chunk of that money, which Trump now seems nearly-certain to do, will have a real psychological impact on him. Even if he doesn’t have to declare bankruptcy. Again.