Nathan Deal, who has already been named one of the most corrupt members of Congress for lining his own pockets, now appears to be having Christine O’Donnell-esque problems with his house. According to the Atlanta Journal-Constitution, Deal is in such dire financial trouble that he must sell his home to avert foreclosure.
Just who you want in charge of your state’s finances.
Deal could face financial insolvency after backing family business
By Alan Judd
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.
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