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

[Overmylimit]

Thanks Paint, you are right my house was worth 900k and now its 400k I am on the outskirts of the foreclosure capital of the United States so you can imagine how bad it is here.

I always have this discussion with people about being self employed versus working. Its easy to say when you make 3000 a month and get paid 1500 every two weeks that you have x amount of money left over after your pay bills. For me when I was making 20k per month you could say well thats 10k every two weeks so just pay your bills with what is left over....but for the self employed it doesn't work this way. In the perfect world all my customers would pay on the 1st of the month and I could handle payroll and other bills right away, but what happens when the checks trickle in over a few months I still have to pay payroll (which always get paid on time even before my own bills) and that $$ has to come from somewhere. I can't count the times that my mortgage was due and I had to pay out 8-12k in payroll, so which gets paid 1st...oh and the checks hadn't came in yet. Even when I was making good and had all under control there were still times that I put everything on the line to stay in business....some just cant understand nor would they ever have the inclination to be in business for themselves

[banca rotta]

Hmmmm how to respond to someone who has it all figured out. I don't have a BMW, I do pay for my own medical insurance which is a 1000 dollars a month for my family since I don't work for any company who will provide it for me. Everything that most who work for someone else take for granted in the way of benefits I have to bust my butt to have. In my last post I was just making a reference that looking back at the debt I could have bought expensive cars and then filed which I am sure some who abuse the system do.

Should I be in this mess, of course not but I think the same can be said for others who earn less as well.

Somehow you are implying that just because someone earns more that they are somehow better or should be more in control of their finances versus someone who earns less....no matter what the person earns we all have the same problems maybe for some the problems are just on a bigger scale.

And yes it was ALL business related but still even if it wasn't so what, I was brought up very poor and we worked for everything so I am really upset by having to go thru this, I swore I would never be this down.

"class envy" I don't have it, I have friends who are rich and I have friends who are poor. The bottom line is we are all just people and stuff happens. Like my Father In Law says about rich people..."they eat and s... just like everbody else"

You are exactly who I was NOT referring to. Like some of you, I know 40k per year people with nice savings, all of it earned and I know six figure people that work at jobs, (not small businesses) that are living like millionaires or trying to anyway.

What I meant was that if someone made six figures, got deep in debt, lost their high paying jobs and filed for bk, they are no different then the rest of us. For someone actually filing that is still making over six figures is a bit nuts. That person has the means to re-negotiate their terms and doesn't really need to be in bankruptcy unless they have to get out of a bad mortgage deal.

I guess you are correct though that most of us while we are not jealous of high paying folks we do hold this group to higher standards as far as managing money. We feel that "if we only made the big money we can better manage and not be broke". This isn't always correct but it is by nature what most people feel which is why we laugh at millionaire bankrupts.

I know this isn't a tax forum but for the record the small business stake holders deserve the biggest & best tax breaks of everyone in this country. Hopefully you will be spared under President Obama's tax plan.

[debtmonster]

That's why I would never live in California and wonder why people do. It's too expensive. I remember when a friend of mine's wife left Florida to take a job in San Francisco for $50k/yr. They were jumping up and down thinking that was a lot of money. Then when they got there, it was sticker-shock all over. They eventually moved out of the state.

I know we always got to talking about BMW's on here since I bought one. The reason I got a BMW instead of a Mercedes is because BMW is more sporty, better handling and cheaper than a Mercedes. And when you pay off the BMW, it's cheaper to fix. I would need the AMG versions of MB which is just way out of my price range.

I know once I finally go BK and give my cars back, I'm going to be in the deepest depression for years to come. I'm not using to having cars that have to be fixed all the time. I usually drive brand new cars that simply just work every day. Once we get a $1-2k beater car after filing, it's going to really suck to have to spend thousands in repairs on transmission rebuilds, shocks, motor mounts, tune-ups and much more. I know somebody who has an old Kia Sorento. That would look like a cheap car after a BK to buy for cash. The cost of changing the spark plugs and timing belt is almost $2,000. The vehicle is worth maybe $3500-4000.

Old cars are not cheap. That's why I always think, for all of the money you spend, I'd rather just a tiny bit more and have a brand new car every other year.

I wish I could get 1 or 2 year leases for like $250/mo. but #1 they do not exist and #2 I usually drive 20,000 to 30,000 miles per year.

[banca rotta]

The "BMW" is a great car and I mentioned it just as Metaphor. It's actually great financial planning to buy a BMW (cash of course) and keep it for 10 to 15 years instead of buying an unreliable car that always needs repairs.

[debtmonster]

The "BMW" is a great car and I mentioned it just as Metaphor. It's actually great financial planning to buy a BMW (cash of course) and keep it for 10 to 15 years instead of buying an unreliable car that always needs repairs.

I wrote that for those who didn't think it was a metaphor and since I really did buy a BMW ($740/mo.) and was planning on paying it off and keeping it for 15-20 years.

I just got paid $4200 on the 15th. My wife's net check was $250 on the 17th. I just checked our balance today (the 18th) and it has dropped to a whopping $795. The money is going out like water in your hands. Out of all of the money going out, none of that included a mortgage or BMW payment. Since we had recent use of many of the credit cards, we have to pay the minimums on them for a few months before filing BK.

I was in shock when I checked the balance just a little while ago. I don't get paid again until the 15th and I don't know if next month's check will be $4200 or not. It could be much less.

I need more $$$ for a specialist that my doctor is sending me to and now I can't afford it. I do not have health insurance. I need to go for a sleep study because of my sleep apnea. More people die from sleep apnea than heart attacks. I was planning on doing this next week. Now I won't have the money to go. The $$ for the CPAP machine is a good $400-800 which I will need to pay cash. This really sucks having no money... EVEN when NOT paying my car, mortgage or home owner's insurance! I skipped payment on bills totaling $1,911 (not including a few minimum payments on credit cards and other doctor bills) and I am STILL BROKE! And this is after us making a whopping $5,000 PER MONTH!! Inflation is KILLING US!!

[Overmylimit]

Sorry I thought you were directing the post right at me Although I do deserve to be beat up a little for ever letting this happen in the 1st place. Its funny I can remember when I said to myself man if I could only make 30k a year I would have it home free, then later , if I could only make 50k a year I would be able to do anything......and so on, and so on..

[debtmonster]

Sorry I thought you were directing the post right at me Although I do deserve to be beat up a little for ever letting this happen in the 1st place. Its funny I can remember when I said to myself man if I could only make 30k a year I would have it home free, then later , if I could only make 50k a year I would be able to do anything......and so on, and so on..

YEP!!! I know EXACTLY what you're talking about. I remember making $30k back in 1994 and when they offered me the job, I remember living with my roommate in a 2 bedroom apartment jumping for joy. I eventually got a job for $42k. Then it went up $60k. Then $68k. Then over the years it went lower and lower all the way back to $11/hr. It got to the point where I joined an MLM years ago and that's how I made the $4200 this month. But that money goes up and and down drastically from one month to the next.

I remember making about $800/mo. net living with my mom back in 1989 and having a brand new car for $214/mo. and life was good.

Now I make 5x that amount and I am a financial wreck. I didn't have all the bills that I have now.

[landofpoor]

That's why I would never live in California and wonder why people do. It's too expensive. I remember when a friend of mine's wife left Florida to take a job in San Francisco for $50k/yr. They were jumping up and down thinking that was a lot of money. Then when they got there, it was sticker-shock all over. They eventually moved out of the state.

I know we always got to talking about BMW's on here since I bought one. The reason I got a BMW instead of a Mercedes is because BMW is more sporty, better handling and cheaper than a Mercedes. And when you pay off the BMW, it's cheaper to fix. I would need the AMG versions of MB which is just way out of my price range.

I know once I finally go BK and give my cars back, I'm going to be in the deepest depression for years to come. I'm not using to having cars that have to be fixed all the time. I usually drive brand new cars that simply just work every day. Once we get a $1-2k beater car after filing, it's going to really suck to have to spend thousands in repairs on transmission rebuilds, shocks, motor mounts, tune-ups and much more. I know somebody who has an old Kia Sorento. That would look like a cheap car after a BK to buy for cash. The cost of changing the spark plugs and timing belt is almost $2,000. The vehicle is worth maybe $3500-4000.

Old cars are not cheap. That's why I always think, for all of the money you spend, I'd rather just a tiny bit more and have a brand new car every other year.

I wish I could get 1 or 2 year leases for like $250/mo. but #1 they do not exist and #2 I usually drive 20,000 to 30,000 miles per year.

WHAAA!! Cant believe some of your posts! Do you realize everyone elso this brd is in the same shape or worse?Gonas lose my bmw boo hoo.One of your other posts you say you wanted to drive beaters so no 750 dollor pyments.The more I read of your posts your looking for sympathy I think

[debtmonster]

WHAAA!! Cant believe some of your posts! Do you realize everyone elso this brd is in the same shape or worse?Gonas lose my bmw boo hoo.One of your other posts you say you wanted to drive beaters so no 750 dollor pyments.The more I read of your posts your looking for sympathy I think

Don't worry, you'll get over it.

Send me all of your sympathy in the way of $50,000 dollars... USD.

[Cali]

People live in California because they like living there.

Our debt was all consumer debt w/ a 6 figure income.

That's why I would never live in California and wonder why people do. It's too expensive. I remember when a friend of mine's wife left Florida to take a job in San Francisco for $50k/yr. They were jumping up and down thinking that was a lot of money. Then when they got there, it was sticker-shock all over. They eventually moved out of the state.

[Cali]

If only life was that simple.

I bet if someone came on here and said those making less than shouldn't be in their situation because they can just go out and get 2 or 3 jobs, people would be pissed. So why is it OK to judge those that make more than you?

There's no logical reason for a six figure (like around 150k per year) person to file for bk with consumer debts such as credit cards unless they have many dependents and a very high mortgage.

They can simply just stop paying their bills for about six months to a year and use the credit card payment savings to put in the bank and when the banks start charging off the debt, the debtor can start negotiating and pay 10% of the debt and be done with it. There will still be a 1099 tax bill but all of this is better then bk in any chapter with that income.

It's what I would do (or would have done) if I had that high income.

[Flamingo]

WHAAA!! Cant believe some of your posts! Do you realize everyone elso this brd is in the same shape or worse?Gonas lose my bmw boo hoo.One of your other posts you say you wanted to drive beaters so no 750 dollor pyments.The more I read of your posts your looking for sympathy I think

People always wish for more than they have and wonder why they don't have what Mr. & Mrs. Jones has down the street. So they go out and charge the next bigger and better item to put it outside for the Jones's and everyone else to see that they are better and live better than everyone else. The same as to a vehicle; there are cheaper model vehicles that get great gas mileage, have good repair records, etc. (plus it's how one keeps their own vehicle maintained) but everyone wants to have the Lexus, BMW, etc. for the status symbol that they are well off, even though they may be drowning in debt. That is how the spiral into the black hole of bankruptcy starts. But folks with those attitudes usually end up several years later right at the top of the black hole. Many learn to change their lifestyles and avoid the "I have one better than you" competition out there.

[Overmylimit]

I see the keep up with the Jones all the time....if someone could just find a good balance, buy some things and save like crazy also but its usually to the extreme one way or another. Here is an example of one extreme;

My Great Uncle passed away some years ago, he lived in Sacramento. He lived in a single wide mobile home and was the most frugle person I ever have known. No luxuries at all the same car he bought 20 years before, never bought clothes or anything new for that matter. When my Great Aunt was alive they took a cruise every once in awhile but that was it. And what I always thought was the kicker was he completly retired in 1970 form a Goverment job (he passed in 2001). So he was smart and lived well below his means, but the flip side is sometimes I think you can live too far below your means..he had no children and we he passed his money went to 3 of his Nieces one being my Mom. He had over a half a Million in cash besides stocks. I just remember thinking I bet there was at least one thing he would have loved to have bought at one time or another and he never did, seems like a waste to me.

[Flamingo]

I see the keep up with the Jones all the time....if someone could just find a good balance, buy some things and save like crazy also but its usually to the extreme one way or another. Here is an example of one extreme;

My Great Uncle passed away some years ago, he lived in Sacramento. He lived in a single wide mobile home and was the most frugle person I ever have known. No luxuries at all the same car he bought 20 years before, never bought clothes or anything new for that matter. When my Great Aunt was alive they took a cruise every once in awhile but that was it. And what I always thought was the kicker was he completly retired in 1970 form a Goverment job (he passed in 2001). So he was smart and lived well below his means, but the flip side is sometimes I think you can live too far below your means..he had no children and we he passed his money went to 3 of his Nieces one being my Mom. He had over a half a Million in cash besides stocks. I just remember thinking I bet there was at least one thing he would have loved to have bought at one time or another and he never did, seems like a waste to me.

Your Great Uncle lived through the Depression and that is probably why he was that way. Most older folks are like that who are still alive and who lived through that time as older children, teenagers or young adults and learned to live very frugally. My mother in the 1960's when credit cards became available would not touch one as she always stated there could be another time such as the Depression (how right she was) and never to get into debt. They paid their home off and refused to get credit for anything - always paying cash. When my father died in 1983 (my mother never handled the bills - just ran the household and raised us kids), he had all his cash stashed in his checking account and just some in savings. I was shocked - my mother said he was afraid to put it elsewhere as he knew it was safe there. I put it all in a CD for her which helped her live on it's interest until she died last summer. Unfortunately, the entire amount had to go to pay for her healthcare and nursing home as she declined and was unable to stay in a home environment due to medical issues. Frugal is good to a certain extent -you can't take it with you and inheriting relatives are sure to sell items or spend the cash.

[Cali]

I am curious to know why do people on the BK board have such a problem with high income filiers, when the UST/Trustee/BK Court didn't?