Nathan Deal may have to declare Bankruptcy

[Perky]

http://www.ajc.com/news/georgia-politics-elections/deal-could-face-financial-613928.html

In the midst of his campaign for governor, Nathan Deal faces such dire financial troubles that he must sell his home to avert foreclosure or bankruptcy

Even if Deal liquidates all his assets, however, he still might be unable to repay a nearly $2.3 million business loan, documents reviewed by The Atlanta Journal-Constitution indicate. The loan comes due in full Feb. 1 — less than one month after Deal hopes to take office.

Deal’s troubles center on a failed business venture by his daughter and son-in-law. Deal and his wife, Sandra, invested about $2 million, but lost their entire stake when the business failed. The Deals also guaranteed a series of bank loans to the business as its debt doubled and then quadrupled.

Finally, the daughter and her husband declared bankruptcy, leaving the Deals solely responsible for an obligation that exceeds the net value of everything they own.

Officials with Deal’s campaign confirmed that the candidate is in a precarious financial position. They described the debt as a sensitive matter for Deal and his wife and their three grown daughters.

“There’s some financial sacrifice, and there’s some financial heartburn there,” said Chris Riley, Deal’s campaign manager.

In a statement late Tuesday, the campaign said: “Like most Americans, Nathan Deal has suffered financial losses over the last four years. He has obligations, and he will meet them.”

Nevertheless, the looming repayment deadline presents a set of unattractive options for Deal, a Republican from Gainesville: He could declare bankruptcy and ask a judge to void the debt. He could sell as many assets as possible and ask the bank to write off the loan’s balance. Or he could default on the loan, forcing the bank to seize property he used as collateral and possibly sue him for the remainder.

Any scenario could leave Deal effectively insolvent.

In many respects,, this is very sad and a personal issue. It does not disqualify him for the Governorship... but at the same time it puts him on treacherous ground. I can't see how an objective judge could void the debt and I don't see how he could serve when he is facing such a devastating financial crisis. I truly feeL sorry for him. but I think he has done his party a great disservice by not disclosing this prior to the Primary. i think the State GOP should push Nathan Deal to drop out of the race. Not because he faces financial ruin a month after taking office, but because he failed to disclose the issue during the primary campaign. This is a huge, and I mean HUGE, ethical lapse on his part.

Bet Karen Handel is working the phones this AM.

[Vincardog]

1. A HUGE, ethical lapse on the part of a Republican? I am SHOCKED.

[kirby]

2. Investigation needed...

"leaving the Deals solely responsible for an obligation that exceeds the net value of everything they own"

What banks provided a loan where the obligations exceeded even the co-signers ability to pay? Sounds like some of that
great Georgia banking. No wonder Georgia has banks failing and being taken over by the FDIC almost every week.

[Perky]

6. The bank that made the loan was shut down earlier this year.

But to be honest. If you have a congressman co-sign your loan, it's going to be approved.

[bluestateguy]

3. This is an ad maker's wet dream

n t

[jdlh8894]

4. Why would Handel be "working the phones"? N/T

[Perky]

5. She lost to Deal by less than 2% and he hid his financial problems for GOP voters.

She has already endorsed him so she can't publically slap him. But you can bet she has spoken with GOP leadership about dropping him before it gets worse.

[izquierdista]

7. ...doesn't disqualify him...

It does disqualify him from being a stockbroker, and other positions of fiduciary responsibility. It would also make getting a security clearance more difficult.

I see this in the context of one of the cartoons posted yesterday. For what other job description are lack of experience and a loathing for the future co-workers positive attributes? Now we can add to the list personal financial failings.