bankruptcy as a financial plan- I'll drink to that

[Tucker]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3779098

Indenturedebtor  (1000+ posts)      Mon Aug-11-08 06:49 PM
Original message
My path to bankruptcy
 Edited on Mon Aug-11-08 06:50 PM by Indenturedebtor
Well I lost my job this morning. I've mostly spent the day on the phone with the wife discussing our options.

Over the last 3 years my income as a salesman has been steadily declining. We had a brief period of being above water when I was working 80 hours a week as a car salesman, but the customers started to dry up as the housing decline accelerated. Many customers bought cars on their house credit, and many others simply bought more than they could afford using the easily available credit of the time. We needed reliable transportation to work so we ourselves bought one new car and leased another. Before the decline in the car market it was a reasonable financial decision.

After things started to head down hill we were still in the black, but decided to get a fixer upper that we hoped would appreciate through our labor, and in a few years we had hoped to be able to pay off all of our debts besides the house.

1.5 years into the house it's declined about 30k in value (probably despite all of the work and money we've put into it), and because my income has been shrinking we've had to fall back on the cards for food here, car registration there, doctor visit copay etc. At this point we're realistically about 70k in the hole if we sold all of our "assets".

Our only luxury is smokes and cheap beer heh. We've been able to visit our families once in the last 3-4 years because they've paid for it. We don't go to movies. We took one small driving trip to Carlsbad caves a few hours away. But really we only spend money on a house to live in and cars to drive.

We've figured that if we quit smoking and drinking we would still be about 600 dollars a month in the hole IF I got another job tomorrow that paid the same. Realistically though it would take at least 2 weeks to start a new job that called me today... and I would get paid 2 weeks after that. In truth it will likely take me 1-2 months to find another job with the same salary, or longer because now I have to explain being moved off salary to "independent contractor" status (great way to avoid paying unemployment).

So we have no money in the bank and less than half the money we need to keep paying the bills. And honestly I just don't want to anymore. We decided to go against our roaming nature and buy into the American Dream. 4 years ago we were travelling the world on a shoe string. We had a few job opportunities to teach English, etc. But we figured that the path to success and a better life lay in climbing the corporate ladder etc. I figured anyways, she was against it. Since that time we've worked like animals - I went from 80 hour work weeks to 40 at work and 40 on the house and other projects. (I post mainly at work while I call people heh). Our enjoyment in life is only really found with each other and our little dog. And we have nothing to show for the last 4 years really - EXCEPT the knowledge that we really don't care about all of this material crap.

We've decided to file for bankruptcy and move into a crappy little apartment close to the university where she works. I will try to keep one of the cars and hopefully get another job making some kind of decent wage. In the meantime I will take some classes and learn everything I can about building a web business. The dream now is that we can make a grand or two from the web business and go live in the "developing" world.

We're both done with this so called American Dream. Please just take our crap and set us free!

 

Debau2005  (1000+ posts)       Mon Aug-11-08 07:00 PM
Response to Original message
7. We are almost in the same boat
 My husband was let go from his truck driving job in May, we were married in April. Right now he is working part time as a barn manager and laborer. He only has 6 months of truck driving experience, he got his CDL in December. At the moment trucking firms are taking drivers with more experience. He keeps getting told to get more experience and re-apply. He is now applying for anything, and I do mean anything. Even the temp services aren't hiring!

Because we are newly married, we have 2 mortgages. His house is on the market, but it has had no hits, so we are going to try and rent it.

We don't know whether to let his house go into foreclosure or file bankruptcy.

I make a very good salary, for a women in the I.T. field, but I can't support 2 houses, and growing bills. We are selling furniture, and jewelry, which has helped us put food on the table.


 

shireen  (1000+ posts)     Mon Aug-11-08 07:05 PM
Response to Original message
14. my thoughts are with you .....
 i'm so sorry to hear about this. many of us here are just a few paychecks away from being in the same boat, and it's very scary.
You made a good decision filing for bankruptcy -- you need to get rid of that financial burden and start over.

Hang in there ... I'm rooting for you

SeattleGirl  (1000+ posts)       Mon Aug-11-08 07:30 PM
Response to Original message
31. Pretty much in the same boat here.
 My work load went way down (I work by the billable hour), so I found another job in the same field, but it was salaried. Three weeks after I started, I was accused of misrepresenting my qualifications, and was given the choice of voluntarily resigning, or of being fired. I chose to resign, even though I did not lie about my qualifications and I can prove it. Their "proof" is that two people SAID they heard me say something I did not say about my qualifications. (I am currently fighting them about being eligible for unemployment benefits.)

So, now I am without a job, and have no good prospects, because my entire industry is suffering.

We were already in debt because of my low income before I got the job I just lost. We thought things were looking up when I got this job; that we could start really chipping away at our debt. Now, that's not possible.

We met with a bankruptcy attorney, and also researched our other options. After much discussion, we decided that our best choice was bankruptcy. I know it's not the best choice for others; everyone should do research into the options and choose the one that is best for them.

I, too, am to the point where I don't give a flying fig about my credit score, or lots of toys and things. I just want to get things resolved, and to stop walking around with this huge weight on my shoulders.

I wish you the best.
 

Her DUmmyness comes out.

[Texacon]

There is so much bullstretching in those threads .....  This kind of stuff really gives insight into how DUmmies really, truly operate.

Here is a great one for you;

Realistically though it would take at least 2 weeks to start a new job that called me today... and I would get paid 2 weeks after that.

Would someone please explain to me WHY it will take you two weeks to start a new job when you don't have to give notice at your present employer?

Here is another one;

In truth it will likely take me 1-2 months to find another job with the same salary, or longer because now I have to explain being moved off salary to "independent contractor" status (great way to avoid paying unemployment).

Wonder if the DUmmie was putting back the TAXES that weren't held out of its check?!  Yeah, this might be a great way to avoid paying unemployment but you also get your whole check and can take business write offs yourself.  That part didn't seem to get mentioned in its post.   

KC

[Carl]

Over the last 3 years my income as a salesman has been steadily declining. We had a brief period of being above water when I was working 80 hours a week as a car salesman, but the customers started to dry up as the housing decline accelerated. Many customers bought cars on their house credit, and many others simply bought more than they could afford using the easily available credit of the time. We needed reliable transportation to work so we ourselves bought one new car and leased another. Before the decline in the car market it was a reasonable financial decision.

After things started to head down hill we were still in the black, but decided to get a fixer upper that we hoped would appreciate through our labor, and in a few years we had hoped to be able to pay off all of our debts besides the house.

1.5 years into the house it's declined about 30k in value (probably despite all of the work and money we've put into it), and because my income has been shrinking we've had to fall back on the cards for food here, car registration there, doctor visit copay etc. At this point we're realistically about 70k in the hole if we sold all of our "assets".

Your income was shrinking for a year and a half,you had debt to pay off yet you bought a house that needed more money put in it all the while recognizing the housing market was in a pull back.

That just plain makes you stupid in my book.

[Chris_]

I especially liked the "I'm just a woman in the IT field" whinge.  Most places I've worked were so PC, they would bend over backwards to hire a woman, whether she was qualified or not.  One of the system analysts (PERL/server scripters) I worked with at Ford could barely do her job.  She just walked around and looked purdy (she did a damn good job of it, though).  90% of the desktop support team was black African-American.  They were qualified, and did a damn good job, but their race had nothing to do with it.

[BannedFromDU]

gee, we have a real big internet company opening up a center right down the street from us.  They're planning on hiring 600+ full time and 700 some part time workers when they open.  A lot of the jobs are in the IT field.  I don't know where these DUmmies look for jobs.

     Any jobs for 45-year-old COBOL or PASCAL holdouts with anger issues who need to be on the medical plan IMMEDIATELY and who need a couple of days off RIGHT AWAY and who needs to see the company policy on benefits for domestic partners before the interview begins and who want to know why there are no vegan crackers in the snack machines and who can't sit in that row of cubicles because someone there is wearing a fragrance and who wants to know what we're doing for Darfur and who is requesting an exception to the dress code and who wants to know if anyone would like an Obama bumper sticker and who requires incandescent light only and who would like to burn a small amount of sage at their desk once a month and...

[Texacon]

This one is a real load of shit.  I don't know of anyone who is going to be fired who can and will do the job.  Just cause you got paper don't mean you are a worthy employee.  Put up or shut up.

My work load went way down (I work by the billable hour), so I found another job in the same field, but it was salaried. Three weeks after I started, I was accused of misrepresenting my qualifications, and was given the choice of voluntarily resigning, or of being fired. I chose to resign, even though I did not lie about my qualifications and I can prove it. Their "proof" is that two people SAID they heard me say something I did not say about my qualifications. (I am currently fighting them about being eligible for unemployment benefits.)

So 2 people say your not qualified yet you can do the job so you get fired?!  I don't think so.

KC

[LC EFA]

There is so much bullstretching in those threads .....  This kind of stuff really gives insight into how DUmmies really, truly operate.

Here is a great one for you;

Realistically though it would take at least 2 weeks to start a new job that called me today... and I would get paid 2 weeks after that.

Would someone please explain to me WHY it will take you two weeks to start a new job when you don't have to give notice at your present employer?

My first guess would be a pre-employment drug test.

[Texacon]

There is so much bullstretching in those threads .....  This kind of stuff really gives insight into how DUmmies really, truly operate.

Here is a great one for you;

Realistically though it would take at least 2 weeks to start a new job that called me today... and I would get paid 2 weeks after that.

Would someone please explain to me WHY it will take you two weeks to start a new job when you don't have to give notice at your present employer?

My first guess would be a pre-employment drug test.

Well, if it has to take a drug test and it is dirty it will take it longer than 2 weeks to get clean.  If it is not dirty the drug test is usually done in a day or two.  I used to have to take a BUNCH of drug tests and they got them done pretty quickly.

KC

[Chris_]

gee, we have a real big internet company opening up a center right down the street from us.  They're planning on hiring 600+ full time and 700 some part time workers when they open.  A lot of the jobs are in the IT field.  I don't know where these DUmmies look for jobs.

     Any jobs for 45-year-old COBOL or PASCAL holdouts with anger issues who need to be on the medical plan IMMEDIATELY and who need a couple of days off RIGHT AWAY and who needs to see the company policy on benefits for domestic partners before the interview begins and who want to know why there are no vegan crackers in the snack machines and who can't sit in that row of cubicles because someone there is wearing a fragrance and who wants to know what we're doing for Darfur and who is requesting an exception to the dress code and who wants to know if anyone would like an Obama bumper sticker and who requires incandescent light only and who would like to burn a small amount of sage at their desk once a month and...

There are still a lot of COBOL programs running -- even after Y2K.  Pascal,  not so much (Pascal, BTW, is not an acronym although I coined on in the 70s for it -- People Agains Stupid Compilers And Languages). 

[LC EFA]

There are still a lot of COBOL programs running -- even after Y2K.  Pascal,  not so much (Pascal, BTW, is not an acronym although I coined on in the 70s for it -- People Agains Stupid Compilers And Languages). 

LOL. Pascal was the first language I ever learned to use, waaaay back in the final years of high-school.

The "business stream" of the Degree I took at college taught COBOL , the "science Stream" was taught C (and MATLAB and some other things).

[BamaMoose]

Indenturedebtor  (1000+ posts)      Mon Aug-11-08 06:49 PM
Original message
My path to bankruptcy
 Edited on Mon Aug-11-08 06:50 PM by Indenturedebtor
Well I lost my job this morning. I've mostly spent the day on the phone with the wife discussing our options.

.... Since that time we've worked like animals - I went from 80 hour work weeks to 40 at work and 40 on the house and other projects. (I post mainly at work while I call people heh)....

Couldn't possibly have any bearing on him being let go.

[BlueStateSaint]

BC, don't you have a "pill" that the DUmb**** can take?  I recommend the 230-grain dose . . . 

[ScubaGuy]

There are still a lot of COBOL programs running -- even after Y2K.  Pascal,  not so much (Pascal, BTW, is not an acronym although I coined on in the 70s for it -- People Agains Stupid Compilers And Languages). 

The rumors regarding the death of Pascal have been greatly exaggerated.  It's very much alive and had it's name changed to Delphi back in '94 it's not the same Pascal from the 70's but it's still a Pascal descendant.

It was on life support until Microsoft killed of VB and then it saw a surge of interest from disgruntled VB shops.

Delphi work continues to be my #2 revenue stream and could actually be #1 if I wanted to take on more Delphi clients.

[ScubaGuy]

I smell a stretchy here.

ndenturedebtor  Donating Member  (1000+ posts) Click to send private message to this author  Click to view this author's profile  Click to add this author to your buddy list  Click to add this author to your Ignore list      Mon Aug-11-08 07:07 PM
Response to Reply #5
15. My wife turns 30 in two weeks, I just turned 29 myself
   
So we have "time". We'll just have to put off having kids a little longer, and honestly I don't see why we really need to have them in America.

Yeah those smokes have doubled in price here! They used a huge tax on cigarrettes to pay for child healthcare here in AZ. I'm all for child healthcare but why hit me with a 100 dollar a month tax to pay for it? Just tax everyone a nickel FFS!

Indenturedebtor  Donating Member  (1000+ posts) Click to send private message to this author  Click to view this author's profile  Click to add this author to your buddy list  Click to add this author to your Ignore list      Mon Aug-11-08 07:39 PM
Response to Reply #37
40. That's a good synopsis really
   
We bought a junker car and it ended up being a complete waste of money. We thought that paying rent was throwing money down a hole. For the last 13 years or so we've done pretty much everything by the book. The more by the book we've played it (last 4 years) the worse things have gone and the more miserable we've become.

[NHSparky]

There is so much bullstretching in those threads .....  This kind of stuff really gives insight into how DUmmies really, truly operate.

Here is a great one for you;

Realistically though it would take at least 2 weeks to start a new job that called me today... and I would get paid 2 weeks after that.

Would someone please explain to me WHY it will take you two weeks to start a new job when you don't have to give notice at your present employer?

My first guess would be a pre-employment drug test.

Nope--I had to take that (and a whole background investigation) for my current job.  From offer to screening (it took two days to do medical/drug/psych/background screens) I could have started the following Monday had we agreed upon that.

[USA4ME]

I could be wrong, but if someone has a user name like "Indenturedebtor," they probably have a little bit of a chip on their shoulders.

.

[DumbAss Tanker]

Actually the OP seems to have a workable plan and bankruptcy is probalby the best option, it is available for a reason and he has the core of a reasonable recovery plan.  Still a good idea to drop the expensive vices, of course.

[Texacon]

The first stirrings of Conservative thought;

Yeah those smokes have doubled in price here! They used a huge tax on cigarrettes to pay for child healthcare here in AZ. I'm all for child healthcare but why hit me with a 100 dollar a month tax to pay for it? Just tax everyone a nickel FFS!

KC

[Texacon]

Immediately followed by DUmmie thought;

Just tax everyone a nickel FFS!

KC