Nathan Deal Named in Reopened Bankruptcy

Former north Georgia congressman and current Republican gubernatorial candidate, Nathan Deal, is being questioned about his daughter and son-in-law's bankruptcy as he was listed as co-debtor in their failed sporting goods business, as reported by Bloomberg Business Week.

A federal judge has reopened the bankruptcy case a month before the November general election. The judge stated that his decision will not affect Deal's on-going campaign for governor.

A lawyer that handled the case for the U.S. government told reporters that Deal should have been listed as a co-debtor.

In 2006, Deal reported in a congressional disclosure form that he was a partner in the business - with a 50 percent stake - but was not named in the bankruptcy filing.

Deal has chastised the media for their attention and said, "I am not going to get into their personal bankruptcy. I don't think that's appropriate for you to do so. For you to drag my family members into this kind of campaign is totally inappropriate."

Roy Barnes, Deal's Democratic opponent said, "If you had a business, who would you want running it right now? Me or Congressman Deal? I'm glad he helped his daughter, but this is not an issue about helping your daughter. This is an issue about disclosure. This is about management. Why was this not disclosed?"

The Wilders, Deal's son Carrie and son-in-law Clint, made Deal and his wife Sandra, liable for a $2.3 million loan the Deal's had guaranteed for them when their Habersham County store failed.

In the court filing, however, the Wilders listed themselves as having no co-debtors and owning the business 100 percent.

Atlanta lawyer, Paul Rogers, appointed by the U.S. Trustee to liquidate the Wilder's assets said, "Mr. Deal was co-debtor on some of the obligations that the Wilders owned."

Deal contends that he was an investor only and had no liability for their business. He also said his only mention would have been as a creditor owed money, if he had intended to make a claim.  He said, "And certainly I didn't intend to do that. I was an investor, I was a stockholder."

Deal's Tilton-based campaign accountant, Jimmy Allen, originally said that Deal should have been in the filing and then later said that his comments were speculative.  He recently stated, "I'm not a bankruptcy expert."

Besides the public's scrutiny of this $2.3 million loan, Deal has also had to field questions regarding a debt so great that he has been forced to sell his home. Coupled with that has been his failure to disclose millions of dollars in business loans on a state form.

Allen states that Deal has plenty of assets to make good on his debts without filing for bankruptcy himself. He is planning on paying his debt - and meeting all of his obligations -  and has begun by liquidating his IRA.

Two bankruptcy experts contend that Deal should have been named in the bankruptcy.

Jack Williams, from the Georgia State University College of law stated, "The trustee has an independent duty to investigate these issues, and as a matter of practice, bankruptcy courts tend to give trustees deference."

Leon Jones, with Atlanta's Jones & Walden, said, "There's no wiggle room -- Deal should have been listed as co-debtor. You have to show that he owes (the bank) the money. That's cut and dried and they didn't do it, but sometimes innocent omissions happen."

Clint Walker had filed for bankruptcy in 2001 but he had mistakenly reported it as 1991. As bankruptcy laws do not allow a second filing with an eight-year period, the case was reopened per orders from U.S. Bankruptcy Judge Robert E. Brizendine. 

Brizendine acted on an order from U.S. Trustee Donald Walton.

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