Gingrich group files for bankruptcy

By Domenico Montanaro, NBC Deputy Political Editor
Follow @DomenicoNBC

In another black eye for Newt Gingrich, the flagship of what's known in Washington as "Newt, Inc.," has filed for bankruptcy.

In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday.

The vast majority of Gingrich's net worth is tied up in the Gingrich Group. Gingrich is worth overall between $7.1 million and $31 million, according to his financial disclosure. He lists a promissory note from Gingrich Group as being worth between $5 million and $25 million. Gingrich was chairman of the group until May of last year, when he announced he was running for president.

(Here are the bankruptcy filings - Part 1, Part 2.)

The news was first reported by the Atlanta Business Chronicle and confirmed by NBC News with the court in Atlanta and a federal court database search.

Gingrich pulled in $2.5 million - the main source of his income -- from January 2010 to August 2011 from sister organizations Gingrich Productions and Gingrich Communications.

Since focusing his efforts on his presidential run, the group has struggled to raise money.

On the campaign trail, Gingrich has touted ideas coming from his health think tank. And it has been a source of controversy, as questions were raised -- and other campaigns questioned - whether Gingrich acted as a lobbyist on behalf of the group in Georgia.

The Washington Post wrote: “[H]is time there exemplifies the former Georgia congressman’s post-legislative career as a well-paid consultant and policy guru, a role that earned him and his companies tens of millions of dollars over the past decade.”