Congressional Candidate Critical of Loan Forgiveness Sought to Have Student Debt Cleared Via Bankruptcy

Republican candidate for Virginia’s 7th Congressional District Yesli Vega, who has campaigned on a theme of fiscal responsibility, filed for personal bankruptcy more than a decade ago, the Prince William Times first reported, and one of her biggest debts was student loans.

Vega has accused her Democratic opponent – incumbent Abigail Spanberger – and President Joe Biden of reckless spending.

Court records obtained by News4 show Vega and her husband, Rene, filed for bankruptcy in Maryland in 2009. The Vegas had liabilities of more than $96,000. About $2,500 was owed in Maryland and Virginia taxes, but nearly half of that total – almost $46,000 – was for unpaid student loans.

Vega has been sharply critical of the president’s student loan relief program. She also recently ran an ad with her father saying she’d cut federal spending.

Spanberger said the bankruptcy disclosure reveals inconsistencies in Vega’s positions.

“The reality of what we continue to see with my opponent are examples of her hypocrisy and examples of where the ideas and the things that she advocates for are very different from her own lived experiences,” Spanberger said.

In a written statement, Vega explains she and her husband once ran a small real estate business. She blames the recession for their financial woes.

She goes on to say: “There is no comparison between my husband and I suffering the consequences of filing for bankruptcy and working to rebuild our lives, and Joe Biden and Abigail Spanberger illegally forcing people who did not go to college to pay off the debts of those who chose to earn advanced degrees just because they think it will benefit them politically.”

Political analyst Stephen Farnsworth said word of the Vegas bankruptcy is bad news for the campaign but may not actually influence that many voters because many are already firmly aligned.

“They’re either very much in the Democratic camp or the Republican camp and they forgive their side and have no forgiveness for the other,” Farnsworth said. "The issue of this latest disclosure is not helpful to the Vega campaign, and for the sliver of voters who might be genuinely undecided at this point, this could be another reason to decide one way or the other.”

Vega’s full statement:

“My husband and I had a small real estate business, just the two of us. During the Great Recession in 2008, like many other people, we really struggled. Sadly, as the markets collapsed under [Barack] Obama and Biden, our small business went under, and we were forced into bankruptcy. I know a lot of other people who are struggling under similar circumstances today and I understand their fear and pain because I’ve lived it, too. There is no comparison between my husband and I suffering the consequences of filing for bankruptcy and working to rebuild our lives, and Joe Biden and Abigail Spanberger illegally forcing people who did not go to college to pay off the debts of those who chose to earn advanced degrees just because they think it will benefit them politically.”