How are people able to get 6-figure incomes & file Ch. 7?

[debtmonster]

After reading several threads on here, I've seen that many people here are 6-figure income earners and still have had to file bankruptcy.

I just wanted sort of a poll here to find out some things...

#1 How were you able to make such a high income? What line of work do you do? Can others easily duplicate this to earn this same income?

#2 What was the total amount you're trying to file bankruptcy on? (Optional: one-line description if you want to add a comment on what you're discharging or want to discharge)

#3 Was it filed or discharged or are you still contemplating bankruptcy at this point (i.e. have not hired an attorney yet, still researching options)?

#4 What was the tipping point that caused you to want to file bankruptcy?

#5 If you had a high 6-figure income and now you don't, what is the before and after? (i.e. Made $175k/yr. as VP of Marketing before, now making $40k selling home theater @ local store)

#6 (Optional) In your own opinion:
a) Do you think the economy/recession helped cause this to happen?
b) or was it just living beyond your means
c) or were you expecting your income to grow and that failed to happen as planned?
d) No opinion yet

I'm sure this would be a great study, so to speak, if at least 20 to 60 high income earners added their 2 cents to this. I would imagine after enough people fill this out, a lot of people contemplating bankruptcy should be able to use this as a great resource in making up their minds.

[jessegirl]

????????? Not another one... LOL

[jessegirl]

Next you will be asking for Social Security numbers... LOL only kidding.

[debtmonster]

Nothing should be here that is unique to identify the person. This is why I did not ask for the city or state.

If these identical questions have been asked before, please post the link to it. I don't think anyone would have asked all of those exact questions.

[magyar123]

To original poster: Who hired you to go on a fishing expedition???

[TEW]

How is that going to help someone on the board to know that information.
I jsut got done handing over every penny i have spent in the last 6 months to the frdral courts why should i put that here

[debtmonster]

How is that going to help someone on the board to know that information.
I jsut got done handing over every penny i have spent in the last 6 months to the frdral courts why should i put that here

So others can compare. I'm doing the same thing. People will know that they are not alone and then they can see direct comparisons with real dollar amounts, not just lame, summaries of stuff they hear on the news. They can come hear and see the real deal from real individuals.

[Logan]

So others can compare. I'm doing the same thing. People will know that they are not alone and then they can see direct comparisons with real dollar amounts, not just lame, summaries of stuff they hear on the news. They can come hear and see the real deal from real individuals.

You should become a plumber. According to John McCain they make over 250K a year.

Logan

[debtmonster]

You should become a plumber. According to John McCain they make over 250K a year.

Logan

I've been working in front of computers for over 22 years. That's all I do.

McCain is a nut job. Ron Paul was the solution. The public let us all done by not voting for him.

[Flamingo]

So others can compare. I'm doing the same thing. People will know that they are not alone and then they can see direct comparisons with real dollar amounts, not just lame, summaries of stuff they hear on the news. They can come hear and see the real deal from real individuals.

Here's a bit of reality as to your questions in your initial posting. People who make very high incomes do not have the time nor the inclination to spend hours posting on BK forums, even if they file a Chapter 7 if they get away with it. Secondly, I am sure they would not post on here all the details you ask due to the chance of someone recognizing their situation. Your post also reminded me of a person who drove everyone crazy in other financial and BK forums in the past (news travels as many posters in forums belong to several forums and trade information. Apparently this person was writing a book and wanted every scintilla of information he could get from posters for his research, everything from dollar amounts to emotions. He asked people to PM him or email him with this information promising discretion. Who knows what his motives were behind all that and how many people contacted him with all that information for free if he ever did write a book. He also tried to utilize other IDs trying to glean information without being obvious.

People need to be careful what they post on the internet. This is a public forum and easily searchable on the net and viewable by anyone even if you Google an ID or User name.

[Overmylimit]

Flamingo has great points the internet is double edge sword, one side can help you and the other can hurt you so we all need to be mindful at all times. As for Debtmonster I wouldn't mind answering questions like I did for the other thread however I haven't seen your #'s quite yet. You mentioned you needed to compile them but everyone else threw their ballpark figures together quickly and posted. Maybe when you want to see others figures and stats you should probably show us yours and we will be more willing to show you ours.

[debtmonster]

I added AMEX and another GMAC loan and right now I am at about $241,000 that I want to discharge... and COUNTING.

I still have "old" stuff from a previous marriage that has been lingering for many years. By the time I am done, I should be above and beyond the $300,000 mark.

I won't know until I enter in each into Excel, one by one. I am taking note of the phone #, the last date of invoice, the mailing address on the back for customer service and the outstanding balance. I want to have all of this information nicely organized to hand over to the BK attorney in a nice, clean format.

Last year we came close to making 6-figures. As it stands now, we're making between $50-60k and the median income for our state is $51k.

Me and my wife both have major health issues and it looks like we're going to have to spend $600/mo. out of pocket for health insurance. That's REALLY going to kill us big time. Even after going BK, we're still not going to be able to afford the cost of living. Money is flying out of our checking account at alarming rates.

I just went to the doctor today and need to see a specialist. I spent hundreds of dollars on monthly prescriptions. And once I get insurance, they will have it as a "pre-existing condition". So we're going to be spending $600/mo for the insurance and then another $350+ for the meds and co-pays. The cost of living is killing me. I need to make 6-figures just so I can eat!

[Doghouse]

Well, okay, I will try and answer some of your questions. First off, 6-figure income is relative to where you live. I lived and worked in San Francisco for a few years where making 100K a year is the equivalent of maybe 40K in Topeka, KS, 50K in Orlando, FL, 39K in Detroit, 45K in Houston, 73K in Miami or 67K in Chicago. My rent in SF was more than my mortgage payments now. I live a little distance from SF now here in Northern California and am actually close to a couple of the top foreclosure cities in the US.

#1 How were you able to make such a high income? What line of work do you do?
Work in information technology as a semi independent. Bill by the hour on contract project at companies and these may last from 3 months to 3 years.

Can others easily duplicate this to earn this same income?

Sure, if you know how to write computer code and live in the right area. Realistically, the glory days of making good money in IT is gone with too many companies outsourcing.

#2 What was the total amount you're trying to file bankruptcy on? (Optional: one-line description if you want to add a comment on what you're discharging or want to discharge)

A lot. Over 116K in unsecured debt plus a house and car. I posted this in a thread I opened earlier.

#3 Was it filed or discharged or are you still contemplating bankruptcy at this point (i.e. have not hired an attorney yet, still researching options)?

Not filed yet. Just started talking to attorneys. None hired yet. Not sure if I qualify for a 7 yet. Plan on filing for BK in Jan or Feb '09 so that 90 days elapse.

#4 What was the tipping point that caused you to want to file bankruptcy?

Constant daily migranes. High blood pressure. Mom, currently staying with me has medical expenses. Monthly expenses exceeded take home by more than 1K. And that's with paying around minimum on all debt. Robbing Peter to pay Paul constantly.

#5 If you had a high 6-figure income and now you don't, what is the before and after? (i.e. Made $175k/yr. as VP of Marketing before, now making $40k selling home theater @ local store)

In my profession, lots of jobs have been outsourced overseas, especially to India where they can hire 2 or 3 programmers for what they'd pay one American. Information Technology jobs are not so plentiful anymore. Since I bought my house over 3 years ago, I've been unemployed for about 10 months out of last 3 years. Current income looks high at $2400/mth gross but it's a temp contract and will end soon. But means test will show I avg over 120K for the year. The job pays no benefits, no vacation, no sick pay, no holiday pay etc hence it's much less when you factor all those into the total. Last year, I made 70K. Highest in last decade, about 140K eight years ago. Lowest 21K three years ago.

#6 (Optional) In your own opinion:
a) Do you think the economy/recession helped cause this to happen?
Added to it. Job loss and companies that outsource IT jobs overseas that has affected me greatly over the last few years. Plus some family medical situations too. But with my house terribly under water by over 150K plus CC bills that added more than 2K in monthly interest alone, I could not take it anymore.
b) or was it just living beyond your means
A little of that but not so much
c) or were you expecting your income to grow and that failed to happen as planned?
No
d) No opinion yet

[Flamingo]

Well, okay, I will try and answer some of your questions. First off, 6-figure income is relative to where you live. I lived and worked in San Francisco for a few years where making 100K a year is the equivalent of maybe 40K in Topeka, KS, 50K in Orlando, FL, 39K in Detroit, 45K in Houston, 73K in Miami or 67K in Chicago. My rent in SF was more than my mortgage payments now. I live a little distance from SF now here in Northern California and am actually close to a couple of the top foreclosure cities in the US.

#1 How were you able to make such a high income? What line of work do you do?
Work in information technology as a semi independent. Bill by the hour on contract project at companies and these may last from 3 months to 3 years.

Can others easily duplicate this to earn this same income?

Sure, if you know how to write computer code and live in the right area. Realistically, the glory days of making good money in IT is gone with too many companies outsourcing.

In my profession, lots of jobs have been outsourced overseas, especially to India where they can hire 2 or 3 programmers for what they'd pay one American. Information Technology jobs are not so plentiful anymore. Since I bought my house over 3 years ago, I've been unemployed for about 10 months out of last 3 years. Current income looks high at $2400/mth gross but it's a temp contract and will end soon. But means test will show I avg over 120K for the year. The job pays no benefits, no vacation, no sick pay, no holiday pay etc hence it's much less when you factor all those into the total. Last year, I made 70K. Highest in last decade, about 140K eight years ago. Lowest 21K three years ago.

#6 (Optional) In your own opinion:
a) Do you think the economy/recession helped cause this to happen?
Added to it. Job loss and companies that outsource IT jobs overseas that has affected me greatly over the last few years. Plus some family medical situations too. But with my house terribly under water by over 150K plus CC bills that added more than 2K in monthly interest alone, I could not take it anymore.
b) or was it just living beyond your means
A little of that but not so much
c) or were you expecting your income to grow and that failed to happen as planned?
No
d) No opinion yet

Some sections of the original post are snipped...It seems like what happened to you also happened to my husband during the tech bust in 2000/2001. My husband was making over six figures as a Senior Unix Engineer (knows his stuff and did contract work and as most of us know, the more you make the more you spend). He contracted for a major bank and also traveled overseas doing work. In early 2001 his entire Dept. was let go; so overnight we lost over 70% of our income. This is what occurs usually as the first step for most who end up filing BK; major job loss or medical emergency preventing one from working or having bad or no insurance to cover hospital stay, meds, etc. As in your situation, you got hit with the outsourcing. The bankruptcy comes in because of the high debt. When the income stops and the savings get utilized, and one can no longer rob Peter to pay Paul, the bottom hits and you end up filing cause there is no way to pay the debt on a shoestring budget. In 99% of these cases, one cannot find a comparable job income wise and either have to change careers to attempt to do so or work at a much lesser paying job in the same field if you can find one, or change careers completely and take jobs as available to survive. Many do not recover unless they go back to school. I believe the OP is a little older from what he reveals in his posting and with his health issues, a major lifestyle change is in order with a huge cutback on spending and learning to live within one's means.

To the OP - you state many issues you have in your last posting; if you have bad medical problems and other issues, you need to learn to adjust your lifestyle after you get out of your continual cycle of spending and hoping to make money to cover the spending and learn the spending has to stop and this is the end of the line and you need to change your life accordingly. We did a huge lifestyle change and my husband now works as a salesman making 1/4 of what he made when he was let go. You have to face reality here and realize you gotta do what you gotta do and that there is no magic wand out there is this economy and for years to come after this economy starts getting better. Reality is a hard thing to face in the US with the gotta have it now and gotta have it bigger and better idealism that exists for consumers. Credit and lending as it was is a thing of the past and those that relied heavily on credit in the past will have to learn to adjust and change their lives accordingly.

[biotechsolution]

I added AMEX and another GMAC loan and right now I am at about $241,000 that I want to discharge... and COUNTING.

I still have "old" stuff from a previous marriage that has been lingering for many years. By the time I am done, I should be above and beyond the $300,000 mark.

I won't know until I enter in each into Excel, one by one. I am taking note of the phone #, the last date of invoice, the mailing address on the back for customer service and the outstanding balance. I want to have all of this information nicely organized to hand over to the BK attorney in a nice, clean format.

Last year we came close to making 6-figures. As it stands now, we're making between $50-60k and the median income for our state is $51k.

Me and my wife both have major health issues and it looks like we're going to have to spend $600/mo. out of pocket for health insurance. That's REALLY going to kill us big time. Even after going BK, we're still not going to be able to afford the cost of living. Money is flying out of our checking account at alarming rates.

I just went to the doctor today and need to see a specialist. I spent hundreds of dollars on monthly prescriptions. And once I get insurance, they will have it as a "pre-existing condition". So we're going to be spending $600/mo for the insurance and then another $350+ for the meds and co-pays. The cost of living is killing me. I need to make 6-figures just so I can eat!

Debtmonster:

Most of the your 6 figure income filiers and high debt amounts were business filiers because no mean test is required. I was double the mean for my state, $189,000/year income, mean around $79,000/year. But 97% of my debt was business, included one personal Chase card because a business JP Morgan line of credit was included. Had around 600K but it was all business lines.

If the debts weren't business the filier is going to have to really prove their case before the UST to get the Chapter 7 if their income is high. If the protection isn't their for the business debtor nobody would take the risks to start a business.