Quote:
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.â€
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.
Deal has publicly addressed the loan’s effect on his financial standing just once: in his written response to an ethics investigation that began before he resigned from the U.S. House of Representatives in March.
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.â€
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.
Deal has publicly addressed the loan’s effect on his financial standing just once: in his written response to an ethics investigation that began before he resigned from the U.S. House of Representatives in March.
If a poor person goes bankrupt, they're irresponsible.
If a rich person goes bankrupt, they're unlucky.
I do feel a teensy bit sorry for Deal - he cosigned on a loan for his daughter's business. His daughter and her husband then ran the business into the ground. Their default on the loan caused the bank that wrote them the check to go under.
Then again, no I don't. He declares an income of $150K a year on his auto salvaging business, and owes over $2 million dollars on his two homes. I'm sorry, isn't the recommended maximum of home value for an income of a grand and a half around $375-400K? And this is GA we're talking about, where $400K is enough to get you a really nice, really big house in a really good neighborhood.
Since the loan was cosigned using his overpriced, overvalued homes as collateral, and he lied on the loan forms about the amount of equity he had in them, he dug himself into this hole.
