Anti-deficit House hopeful filed for bankruptcy in ’94

— First Congressional District Republican nominee Rick Crawford filed for bankruptcy 16 years ago, erasing more than $12,000 in personal debts, Bankruptcy Court records show.

Crawford, who on the stump talks more about out of control federal spending than any other issue, hasn’t spoken publicly about his Missouri bankruptcy filing. Most of his debt was the result of credit-card purchases.

The Jonesboro resident said his own financial failure might give him insight into the nation’s current financial challenges.

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Rick Crawford chosen as Arkansas 1st Congressional District Republican party nominee.

“In some small way, if my personal experience can help us avoid that type of experience for the country, then I think that experience is important and relevant to my campaign,” Crawford said, adding that it might help some voters identify with him.

Crawford, who now owns a farm-news radio service, said the bankruptcy is in the past.

“That was decades ago.I was in my 20s and having some financial difficulties,” Crawford said Wednesday when contacted by the newspaper. “It was a tough time. I think everybody can relate to that. I’ve put that behind me and worked to start a small business to create jobs for Arkansas and help farmers.”

Crawford, 44, filed for bankruptcy in the U.S. Bankruptcy Court, Western District of Missouri, in April 1994.

At the time he declared bankruptcy, Crawford was28 and living in Springfield, Mo.. He worked at an auto decal and sign shop, doing a little bit of everything, he said. He had left the Army about 5 1/2 years before and attended Arkansas State University in Jonesboro before transferring to Southwest Missouri State University (now known as Missouri State). He took time off from college to get his finances in shape, he said, adding that he later finished his degree at ASU.

Documents show that he listed $1,135 in personal property, including his previous year’s tax refund of about $400, a $150 sofa, a $75 chair, $75 under coffee/end tables, $100 under television/VCR/ stereo, an $85 microwave and $75 under bed/dresser/chest. His clothing was estimated at $150.

His debts were $12,611.67, including $7,531.48 in creditcard debt. Other debts included utility and telephone bills.

The Bankruptcy Court filing listed $4,239.95 in medical bills. Crawford said “he didn’t have a real clear memory” about the medical expenses.

“That was a real long time ago,” he said. “I don’t keep the documentation on file at my house.”

Crawford frequently talks about the growing national debt on the campaign trail, often invoking a digging metaphor. He tells gatherings that the country needs to put down the shovel and stop digging itself into financial ruin.

On Wednesday, Crawford said there isn’t any disconnect between his current political message and his financial past.

“It’s not something that I’m backing up from. It’s an experience that I went through and accept. I want to help people avoid that type of experience. More importantly, I want to help my country avoid that experience,” Crawford said.

He said his opposition to the health-care overhaul passed earlier this year in Congress wasn’t influenced by his own inability to pay for his medical expenses 16years ago.

“I’ve really not equated the two. I don’t think that experience in my life would be an experience that would lend me to say, ‘OK, we need a government-controlled healthcare program that we can’t pay for,’” he said.

Shortly after his bankruptcy he left Springfield and began to travel the country as a professional rodeo announcer, he said. He later returned to Jonesboro to finish college. He now owns AgWatch, which he founded in 2006 and which employs 11 people. This year the business is expected to exceed $600,000 in sales.

After Crawford’s bankruptcy, a Republican-controlled Congress passed and President George W. Bush signed legislation, backed by credit-card companies, which made it tougher to discharge debts in bankruptcy.

Crawford said he hasn’t tried to hide his bankruptcy.

At some campaign stops, people have approached Crawford, saying that they had heard rumors of a bankruptcy. Crawford is always very open about the experience and tells them it’s true, said Jonah Shumate, Crawford’s campaign manager.

The experience shows that he is a regular person who has faced tough times, Crawford said. He said 1st District voters won’t hold it against him.

“I think that what matters to people in 1st District is that they elect people who can relate to their problem. What I hope people will take from this is that we all face challenges every day,” Crawford said.

He drew a contrast between himself and “political insiders” who have lived in a “Washington bubble.”

He is a “regular person,” who has lived a “real life,” Crawford said.

Asked if he would have supported the 2005 overhaul that made it tougher for debtors to declare bankruptcy, Shumate said Crawford hadn’t even decided to run for Congress at that time.

“I think Rick would have to read through the legislation before he decided [his position],” Shumate said.

Crawford’s Democratic opponent, Chad Causey, worked as chief of staff to U.S. Rep. Marion Berry, who is retiring at the end of this term.

Asked about the bankruptcy, Causey spokesman Candace Martin said, “This is concerning to hear of, but it’s something our opponent will have to speak to.”

Green Party candidate Kenton Adler of Batesville and independent Richard Walden of Jonesboro are also in the race.

Hendrix College political science professor Jay Barth said the news is likely to be “a distraction” for Crawford but isn’t likely to be the defining issue of the race.

It probably weakens Crawford’s deficit-hawk status, Barth said, and “the only potential lemonade out of this is the connection with regular people.”

Causey’s restrained response and Crawford’s willingness to speak about thematter are good political instincts by both campaigns, Barth said.

“Both sides played it about as well as they could,” he said.

Crawford said he didn’t expect the news of his bankruptcy to damage his chances to be the first Republican to win election in the 1st District since Reconstruction.

“Life experience is a great teacher,” he said.

Arkansas, Pages 9 on 07/29/2010

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