Just got a call from former state lawmaker Jill Chambers, a Republican from Atlanta, who says that she found herself on the short end of a federal bankruptcy judge’s ruling this morning.
Chambers filed Chapter 13 bankruptcy last year, in an attempt to protect $64,000 from being seized by creditors of her husband’s failed business.
We haven’t seen the order yet, but Chambers said the judge declared her campaign fund to be a personal asset exposed to creditors.
Chambers, who had chaired the MARTA oversight committee, had failed to incorporate her re-election campaign.
Chambers lost to Democrat Elena Parent in November.
Asked if she were planning a comeback, Chambers said no – any funds she raised for her campaign could be tapped by her creditors.
“No, I can’t come back, thanks to this decision,” she said.
By the sound of it, the decision could have repercussions for many other financially troubled public officials as well. We’ll post it as soon as some kind soul sends us a copy.
Updated at 2:50 p.m.: Chambers had said that, from the bench, the judge had said it wouldn’t have mattered if she had incorporated her campaign fund. But Marc Hershovitz, the attorney representing the creditors, called to say she must have misunderstood – that incorporation would have made all the difference.
The judge has yet to reduce his opinion to writing, but Hershovitz said the decision largely tracked with this brief he filed on the matter.
- By Jim Galloway, Political Insider