• 23
  • September
    2010

Florida's neighbors to the north are experiencing an interesting gubernatorial race, and bankruptcy happens to be a factor.  In a red state like Georgia, the Republican candidate for Governor would usually be a shoe-in, more or less. Not this year.

Information leaked recently that gubernatorial candidate and nine-term congressman Nathan Deal is on the brink of bankruptcy. Deal reportedly is being forced to sell his house due to mismanagement of personal finances. Local party members are having second thoughts about their candidate, who was already forced to weather serious scrutiny of his ethics during primary season this past summer. A poll taken just before the bankruptcy woes were revealed had Deal in a dead heat with the Democratic candidate. Now, members of his own party are saying Deal should bow out of the race to make room for another Republican candidate.

Deal has until Feb. 1st 2011 to repay a bank loan to the tune of $2.3 million, which had been used to finance a new business venture of his daughter's. Deal's daughter had to declare bankruptcy when the venture went south, sticking her parents with the debt as the guarantors of the loan. The candidate's total assets were listed at $2 million in the most recent state disclosure form on file, though the Associated Press uncovered an additional $2.85 million in loans omitted from the form. Deal released statement that this omission was a simple oversight and quickly amended the form to reflect a total of over $5 million in unpaid loans.

Deal remains insistent that he will be repaying the loan by February and that he would not file for bankruptcy, even putting a clever political spin on the matter saying that he's facing the same financial issues as many in his potential constituency.

Source: Associated Press "Republican's financial woes recast Ga. Race" 9/22/10