It’s Friday night, and I just had my second cup of coffee (homemade). Coffee is a new thing for me, but I think it’s something I could get used too. Pretty cheap too. And probably better for me than my typical Rockstar jumpstart. I treated myself to a firelog, for some reason I find the flames incredibly soothing and makes sitting at the computer much easier on a Friday night.

It’s been an up and down week. Sunday and Monday I felt like I was gonna beat the living snot out of anyone looking at me the wrong way. Tuesday something clicked, I went for a run, and the week started looking up. I’ve found the biggest determinate of my mood is how much I get done. It’s not healthy, but it is what it is. The more I get done, the better I feel.

Financially it’s been a much better month than January. I haven’t run my final budget numbers yet, but I cooked a heck of a lot more and kept the eating out to a minimum. Business-wise, it’s still touch and go. We’ll end up with a pretty solid month, profitable, but that doesn’t include any debt payments save the 0% on the 3 citicards. And that deal is running out in a few months.

I got every tax issue calculated this week. It’s not pretty. It’s not terrible, but it’s not going to be easy. But heck, what is easy at this point? I ‘effed up, and now I’m paying for it. The IRS is owed just under 20K for 2006 and 2007. This is my first priority in terms of payments. In past dealings, I actually found the IRS very easy to deal with. But that was for a much smaller dollar amount. We will see this time. My calculated number also does not include penalties, so the number will balloon. If I can work out a 24-36 payment plan, I could fit that in the budget right now. It wouldn’t be pretty, but it would work.

Red or Blue pill?

I can only go on in this limbo mode for so long. At some point one of two things is gonna break:

1. A creditor is really going to come after me (IRS, bank loan, etc) or

2. My project “A” plan blows up, or something else to get my business up in the mid teens-20K range. Not this 7-8K every month.

So, which is going to come first? Lord knows I’m working my rear off for #2. But there is only so much I can do. I force a client too much, and they get pissed off. I guess the #3 option could be that I slowly start to chip away at things, even if it’s $500 a month at a time. Depending on if #1 happens or not, that is a possibility as well I suppose. That possibly is also kind of lame.

Field Trip Friday

I got out of the house today and over to Bellevue. I had wanted more info on Sharebuilder and so I met with a PR rep for a little while in the afternoon. I have a review of the meeting that I’ll post next week, but here was the really interesting part:

For the first time I met with someone as “DebtKid”….not just myself. I’ve interacted with lots of readers and bloggers and Lending Club who know me as DebtKid, but that’s always been over e-mail, or the phone. This was actually in person.

My blog and my situation came up in the meeting, and it was strangely easy for me to talk about. I did not feel ashamed, or embarrassed like I thought I might. But this was someone who never knew me before, so maybe it was different. I don’t know.

Someday I’ll…

I do know that I’m much more comfortable talking about money (with my family, friends, etc) than I ever have been. I think this is a good thing. I especially think that my generation (20’s) needs more than ever to be talking about our finances. I feel like I could talk for hours on the mistakes I’ve made, and how to avoid them. Who knows, maybe someday I’ll be able help others facing some of the obstacles I’ve faced and am facing. I hope that’s the case.

I'm 300K in debt. Gulp. I'm 24 and day traded away a fortune. Now I'm trying to crawl back to zero. Why not subscribe to my RSS feed and join me on this journey. You can also subscribe via e-mail. I appreciate tips and feedback! ~ DebtKid

I get alot of mail. Between collection letters, post-bankruptcy spam letters, and actual mail, my mailbox is never empty.

How To Manage Collection Letters & Bills

I may not be able to pay all my bills, but gosh darn it if I’m not organized with them.

Step 1 - Label Your Folders

You’ll need three (two if you only have personal and no business debts) folders. Legal size is my preference, but use what works for you.

Label the folders “Current Collections - Personal”, “Current Collections - Business”, and “Reference Collections”.

Step 2 - File your collections letters

Once you have setup your folders, the system is easy. Keep your most current collection letters (offers of settlements, etc) in the appropriate folder. When I am sorting my mail, I like to open each collection letter, and use a paperclip to keep the return envelope attached to the letter.

When you receive an update statement or offer from a collection company (or, the collection company changes!), move the older letter into the “Reference Collection” file folder.

This system allows me to easily find my most recent statements when I need them. It also manages the massive amount of paper that you receive very simply.

With some old high school buddies coming to the age where they start purchasing homes, the topic of credit scores recently came up.

You know you’re getting older when you start talking about mortgage rates and credit scores!

It was actually a pretty fun conversation for me. I didn’t input anything (I got 200K+ in credit from age 21-23…I think I know a little about credit scores!), but just listening was amazing.

Hardly anyone my age has any clue what their credit score does, how it’s calculated, or what it affects. I was amazed. My friends are all college graduates, some with master degrees. Yet, very few even know, let alone understand their credit score.

Now, I won’t even get into Business credit scores, because that’s a whole other ball game (that most small businesses don’t know about either). But personal credit scores….come on guys. Let’s play a game….the friend with the lowest score wins…

I win!

Seriously though. Should I even bother caring about my score at this point? The last time I checked it, it was 471. And that’s before I had filed for bankruptcy. I wonder how much more it can drop…

For the normal post-college grad my age, it’s 3 digits that really matter. For me right now…I think it’s one of the last things I need to worry about. Someday, maybe someday I’ll want to look at my score again, but for now I think I’m OK being a credit score expert…with a terribly low score.

And no, it’s not because that’s when I go to church. I usually go in the evenings.

I hate Sunday mornings because it’s easily the most difficult day of the week for me to get going. Especially today. I have a ton of work to get done today, but enough motivation (willpower?) to start on Sunday morning? No.

I’m not at all feeling like my normal self today. I’m not sure what it is. Maybe I slept too much. Maybe I’m anxious about next week. I don’t know.

My Project “A” plan is having a big test by a client next week. It’s been delayed for awhile, but next week should be big. Everything just moves so slow for me. It moves slow and then I sit around wondering, “what the crap am I doing with myself?”.

I want to have more friends, I really do. I just can’t seem to bring myself to be social at all. Even in group settings, I maybe say a few words, deliberately avoiding any kind of meaningful conversation. I immediately redirect any question to myself unto the asker. It’s quite easy really, I’m a little surprised at how good I’ve gotten at it.

Making new friends is hard enough as it is, and I think for me it’s really hard because I’m so used to being unfiltered.  Just myself. Just saying whatever comes to my mind. Now, if someone asks me, “how was your week?”

I have to stop. Pause. Reflect….and come up with an acceptable answer.

Because the truth is….unless it’s a close friend (of which I do have one I can talk with) no one wants to hear this:

“Well, I received about 20 collection calls, the IRS sent me a notice, my big project got delayed, my mother is still an invalid, and I still haven’t done my taxes” (but I did save 10% on my car insurance last month! end sarcasm)

I want to be more open….I really do. It’s just hard for me. It’s just really, really hard to do.

I knew it would happen eventually. I received notice from the IRS this week about not filing payroll taxes for 2007. Nothing crazy yet, but I need to get on the ball with finishing my business taxes for 2007 so I can at least know where I stand here. It will be at least a month or two before they start sending an estimated bill, so I have some time.

I’ve been sleeping terribly lately. I don’t know if it’s my crappy $30 used craiglist mattress, or the noises outside my door, or what. I just can’t seem to get a decent night’s sleep lately. All my life, I’ve never had trouble sleeping until all this mess. Maybe it just is the mattress…I don’t know.

I saw the full lunar eclipse tonite, that was pretty sweet. I’m a bit of a nerd for that kind of stuff (thanks Dad). It was nice to look up into the sky and realize…holy crap. That’s the freaking earth’s shadow! It made me and my problems feel very, very small. And it was exactly what I needed.

I’m going to make it through this mess I’ve made. It may take ages, but I’m going to make it.

I went to Portland, OR this weekend to visit with my family and get away for a few days. I get lots of free food and so the trip usually makes up for itself it terms of my gas expense. Plus, it was just nice to see my family.

I got more than one comment from family members on how I had “more of a sparkle back in my eye”….that was nice. I felt more confident speaking, and hanging out with friends down there as well. I also had a long discussion with my mother about her future plans and where I fit into that.

My lease on my current place runs through Aug. of this year. At that point, I want to have the freedom financially to choose to move to Portland. Moving to Portland I could save significant amounts of money in rent (by renting from my mother), and general cost of living is cheaper as well. It’s a decision though that I want to be able to choose, not have to do….you know?

In an ideal world, I would be able to send my mother $1000/mo. That would help her significantly and I would feel much better about the situation as well.

I really just need to turn the corner with my Project “A” business. It’s going to do just over 2K this month in revenue (at about 80% margins as well), I really need to get that number up to 10K. That’s the only way I’ll start making significant progress against any of my debts.

Anyway, I’m glad that my family members have noticed a difference in me. I’ve felt much more confident and OK with my general life situation the past week or two. I’ve also been getting alot done, which always make me feel better..

If I ever get out the mess that I’m in I know exactly what I will splurge on.

Newspapers.

Yep, I love real, crisp, newspapers.

I’m a huge news junkie, and while reading online content is great…there is just something about having that physical paper in your hand. Plus, it’s great for starting fire’s as well.

I already know which 10 newspapers I want…

my dream list:

1. Wall Street Journal
2. Washington Post
3. New York Times
4. Seattle Times
5. Seattle PI
6. USA Today (for the pictures)
7. The Oregonian (go blazers!)
8. Investors Business Daily
9. Guardian (UK)
10. Financial Times(UK)

I don’t know how much that would cost each month, but I would be in heaven!

I talked with Citibusiness Cards today. They called me in the early morning on my cell phone. Apparently my $48 charge didn’t go through my business bank account last month. It was an address issue.

I also found out the date that my 0% grace period with them is ending: April 28th, 2008

I have 4 CitiBusiness Cards that are on a 0% hardship program that I negotiated about 9 months ago. I have been paying on those cards for the last 9 months.

In April, my 0% period is going to be over.

(more…)

Since discovering I was paying waaay to much to redbox and blockbuster, I signed up for Netflix as a source of cheap per hour entertainment. I love the service already after just a few weeks. I’m totally a movie/tv series junkie, so Netflix is great. Anyway, I figured I’d start a weekly DebtKid pick ‘o the week from my recent Netflix picks. I tend to enjoy smaller, lesser known films and tv-series, so hopefully you’ll discover something new.

(more…)

A judgment is simply the official decision of a court at the completion of a lawsuit. It merely indicates that the court has resolved the issues brought before it in a lawsuit in favor of either the plaintiff or the defendant. It generally stipulates a monetary award to the winner. Where very-large awards are concerned, a judgment is frequently placed ‘on hold’ pending the outcome of an appeal to a higher court.

In civil lawsuits, enforcement of a judgment is not handled by the court that handed down the decision. Instead, enforcement is left in the hands of the parties in the lawsuit. While most people comply with the court’s order, there are exceptions that require the winning party to take further action to collect the funds that were awarded. In addition to resolving the issues themselves, a judgment in civil cases almost always pays both damages and court costs to the party that prevails.

Perfecting a Judgment

Once a court of law hands-down a judgment, the next step is for the winning party to ‘perfect’ it. While specifics for doing this vary somewhat from state-to-state, perfecting the judgment is always the initial step. To accomplish this, it is important to make certain that the court’s written decision of judgment has been signed by the judge and actually filed by the clerk of the court. Generally, the court will retain the original and supply what is called ‘a conformed copy’ to the judgment creditor (winner).

In many states, Notice of Entry of the judgment must be given to the judgment debtor (loser). The date that the order is issued often determines the time period which the debtor has if he wishes to file any appeal.

Escape Through Bankruptcy

It is possible to discharge the amounts owed under many judgments by filing bankruptcy. However, there are exceptions, including judgments for the payment of child support and delinquent income taxes. Judgments also show on your credit report as they are a matter of public record and are usually discovered by the three main credit bureaus. They are not necessarily considered any more heavily than any other debt you owe and will be added-in to calculate your total indebtedness.

Appealing a Judgment

While a judgment is a lawful order from a recognized court of law, it may be appealed to a higher court if there is sufficient reason to believe that the issuing court erred. Ordinarily, this is a decision that requires a skilled attorney who is thoroughly familiar with both your case and the rules of the appellate courts. In some instances, new evidence may be grounds for appeal and if the appeal is granted, the original court is usually ordered to re-hear the matter. In most cases, appeals are filed only where larger sums are involved because of the additional court fees and attorney’s fees involved in a further legal proceeding.

Collecting on a Judgment

Obtaining a legal judgment does not necessarily ensure that you will ever collect the amounts awarded to you by the court. It merely gives you the right to take any lawful steps available to do so. This may include seizing property or other assets, forcing a Sheriff’s sale or even garnishing monies due to the debtor. Many civil lawsuits are never even filed because an investigation fails to turn-up enough assets to make the additional costs worthwhile.