Eventually I’m going to tell everyone I know about this whole mess. Eventually.
The next 2-3 months are going to be crucial for me. My Plan A project at work will be ready to launch in less than two months, and should begin generating revenue within 3 months. Plan B project has started and I’m just working the kinks out of it before we add more clients to our starter client we have now. But getting the kinks worked out is going to take at least another 3 weeks.
Sometimes I feel like I’m always waiting. Waiting for next week for this to be done, waiting for that to be done. Yet, I’m ALWAYS working, and I feel productive. I’m just doing a ton of groundwork laying at the moment, none of which generates any new sales at the current moment. But it’s work that has to be done for Plan B and A projects to be successful down the line. I just don’t feel like I’m being productive unless I’m making sales. I suppose it’s the whole “patience” thing I’m trying to learn.
My brother is letting me borrow a bike from him while I’m “homeless” at the moment. I’ve never been much of a bike rider, but I went out for a bit last night and it was really nice. I’m used to moving so fast (drive here, fast, eat this, fast, call this person, fast, get the sale, fast) it was nice to go for a leisurely bike ride.
I’m definitely moving slower than back in Jan/Feb. People must have thought I was strung out on something because I was a mess! At least now I’ve realized I don’t have to move a million miles an hour to get stuff done, and that I’ve made it 6 months now, chances are I’m gonna be here tomorrow.
The Bankruptcy – Chapter 7?
I’m going to be filling bankruptcy (personal) in the coming weeks. This is another project to work on. It doesn’t even seem to be a big deal to me at the moment. Maybe it will later on but, looking at how I screwed up, and the mistakes I’ve made, filling bankruptcy probably barely cracks the top 10 list of embarrassing things in my life. So, it’s a lot of paperwork to get together, and it’s only going to get rid of about 70K of my debt load, but at least its another chunk gone.
I was hoping to be able to avoid going the BK route, but it just makes the most sense for my business, myself and it’s the only fair option for my mother as well. I owe it to her to put my pride aside and do what is best for me to bring in the most money. So, that’s that.
If I can file Chapter 7, which according to the lawyer it looks like I can (I’m still getting books done for my business for last year), it would wipe a good chunk out of the 300K or so I still am facing.
What debt would be left?
Even after a personal bankruptcy, my overall unsecured debt, including what I owe my mother is still going to be well over 200K.
Well, one step at a time, right!
{ 6 comments… read them below or add one }
What about the disadvantages of bankruptcy? Likely to hinder future income?
It’s all about taking steps in the right direction to get you closer to where you’re going…. I know, heard it a thousand times… but you’re not going to get out overnight aside from the following possibilities:
1. win the lottery(but a type of gambling got you into this mess)
2. Nuclear war and all bank records are lost (not good for anybody:-))
3. a wealthy benefactor reads your blog, doesn’t want their deadbeat children to have any of his/her money and decides to leave all their millions to you.
4. you find a buyer for the Circus Circus casino in Las Vegas and cash in on the $15mil finders fee (oh wait, Casey Serin has that one already…)
Anyway, you’re doing the right thing, and remember, you can always give those creditors something in the future when you have more money if you feel so inclined.
You can’t wipe away the debt and leave your obligation to your mother in tact. As far as the law concerns, she’s just another unsecured creditor to you. You may feel obligated to pay her back, but the LEGAL OBLIGATION will be wiped out by a Chapter 7 bankruptcy. After that, any money you give to her is considered a gift, with a 12k per year limit after which you must pay a gift tax (Yes, the GIVER, not the receiver, pays the tax on gifts).
In that case he ought to reaffirm his debt to his mother during the chapter 7 bankruptcy, to avoid paying a gift tax when he repays his mother? I didn’t realize gifts were taxed, but now that you mention it I do remember the one-time gift limit Andy Dufresne spoke about in The Shawshank Redemption. XD
Vinnie,
The money that I “owe” my mother is a self imposed debt. It’s real, but not “legal” real. I traded away my mothers accounts, she did not lend me mother, I just traded (without her permission). Hope that makes sense!
1. If you have a job, does the court allow you to fill Chapter 7 to wipe out all credit-card debt?
2. After filling PB, why not consider to move aboard to start a new life. I heard that PB only affects personal credit score in US.