Hopefully this was a good place to start with my issue, and introduce myself to the forum. I am a single guy with no kids, age 34. I was partners in a LLC that went sour back in 2001. I wont beat around the bush, but some of the 7 digit loss to the creditors was classified as criminal, but still handled low key. I dont feel this is the place to discuss that aspect of the problem but want to touch on it now that anyone reading this must be curious.
For the record, the very liberal funds availability policy of several local banks was taken advantage of for YEARS. Not abused to buy luxury items, but to cover other bills and keep up with payroll. "borrow from Peter to pay Paul scenario" They (banks) were more than aware of a potential problem and the accounts were all red flagged multiple times, but never shut down. Their denial of this is part of the reason the government treated me very fairly and understanding. Also I was very straight forward, cooperative, and made every effort to make it right.
The two banks that lost the money that was classified as loaned involuntarily, or criminal, received default judgments. I was so relived to not be arrested, that i was stupid enough to agree to almost anything and didnt try to stop them. (had two attorneys on retainer as well) We were all working together and they were being paid back a large sum each month, with interest that would of cleared the whole mess up in 10 years or so. There were no flashing lights, no media coverage, or anything I feared for years since I really became aware that I was in too deep. However, the impact of 2 judgments over 400k each, instantly nuked my excellent credit. (gee, i wonder why?)
Finally the re-payments stopped and the business closed because it was just impossible to keep going with no credit. They (banks) shot their own foot with that move. There were no liquid assets to take anyway. Savings accounts maintained in the banks involved were already added to the deficit with one push of a button. (around 100k) Again, a real criminal would not leave money laying there to take in the first place.
Because this was / is not dischargable debt, i considered myself "judgment proof" and did not even consider Bk because it would show a bad attitude to the government. Again, the huge judgments would not go away anyway.
I stopped paying unsecured debt. Especially credit cards that turned on me the second the judgments hit. 9.9 percent jumped to 24.9 default rate even though i never skipped a beat. When i was told I am NOW a credit risk, I became IRATE. I vowed that since they were so worried about the business judgments that had nothing to do with CC account, I would address that first and pay them back SEVERAL YEARS LATER, if at all. I have had to live my life now for 7 years of horrible credit, and all the usual consequences that happen when you stop paying bills. I even have one of those 500 dollar credit limit with a 60 dollar annual fee cards as my only cc now. (complete joke but better than nothing)
I still have one low dollar property in my name that I use for a rental, so its not considered my residence. I was fortunate enough to have a family member buy the note and become first in line for the mortgage. I dont pay them, so they could foreclose at any time since they are now the bank for that house. The house i live in, I rent from family. And it will be willed to me AND a sibling for later down the road since my rent will of paid for it anyway. I lost my primary residence and first home a few years back to foreclosure. I made the huge mistake of a 15 year mortgage. Not only were the payments suddenly too high with no steady income, but equity would build up too fast. Amongst my several judgments (10 or so) one is for the deficiency on the foreclosure auction. That house by the way, a family member also happened to be at the right place at the right time and bid against the PUBLIC and won. (worry about how all this would look to a trustee even though i didnt move back in)
I think anyone reading gets the general idea of the MESS. Now that the new BK laws came into effect, and the circumstances of the large judgments, i see no sense in filing. I get by through e-commerce and cash. (no real job to garnish) I will always have a roof over my head thanks to my helpful family.
I drive older cars with high mileage and low book values that I am able to keep looking great and maintain myself. I dont have cars or insurance in my name anyway. I love not owing on them and they never get boring because there is always something to tinker with under the hood. HA! The IRS has me in a deferred payment status for my obligations with them.
I was able to keep Uncle Sam happy in all aspects of this case so far, but dread the thoughts of Trustees, Bk judges, etc. I have been dealing with his one problem at a time and dodged a lot of bullets.
Yesterday was one of those days that was another kick in the pants and made me wonder when this will get better. A law firm / collection agency combo is after me for TWO cards that i stopped paying on in 2002. They managed to levy the one and only checking account I was dumb enough to have. Now the bank has froze the account and drew it negative for legal fees and the collection agency gets the 3 bucks i had on deposit. (keeping a balance as low as possible makes being poor more interesting) I think I am on the right track, but a lawyer cant even give me a straight answer since these are not ordinary judgments. (or they know how broke I am) I become confused and nervous and push the problem on the back burner once again. After waiting this long and the magnitude of the bigger debts that WONT go away with BK, should i worry over around 100k in unsecured debt that has already destroyed my credit? I ALMOST let this destroy my life totally and have absolutely nothing to show for my late 20's and early 30's when people should be getting serious about building financial stability. I held off on starting my own family due to this as well. How much damage can the same credit cards I stopped paying 5 years ago, do now? They kicked me when I was down so i completely ignored any attempt they made to work with me. If they were lucky enough to get me on the phone, i would tell them to read my credit report, get a judgment and wait in line. "CLICK"
Speaking of "CLICK" thanks to anyone who has read this far without hitting the X, but this is long enough. Any advice would be appreciated. I cant even afford to go BK right now even if i wanted to. The new laws made it expensive i hear and not always the right thing to do.
For the record, the very liberal funds availability policy of several local banks was taken advantage of for YEARS. Not abused to buy luxury items, but to cover other bills and keep up with payroll. "borrow from Peter to pay Paul scenario" They (banks) were more than aware of a potential problem and the accounts were all red flagged multiple times, but never shut down. Their denial of this is part of the reason the government treated me very fairly and understanding. Also I was very straight forward, cooperative, and made every effort to make it right.
The two banks that lost the money that was classified as loaned involuntarily, or criminal, received default judgments. I was so relived to not be arrested, that i was stupid enough to agree to almost anything and didnt try to stop them. (had two attorneys on retainer as well) We were all working together and they were being paid back a large sum each month, with interest that would of cleared the whole mess up in 10 years or so. There were no flashing lights, no media coverage, or anything I feared for years since I really became aware that I was in too deep. However, the impact of 2 judgments over 400k each, instantly nuked my excellent credit. (gee, i wonder why?)
Finally the re-payments stopped and the business closed because it was just impossible to keep going with no credit. They (banks) shot their own foot with that move. There were no liquid assets to take anyway. Savings accounts maintained in the banks involved were already added to the deficit with one push of a button. (around 100k) Again, a real criminal would not leave money laying there to take in the first place.
Because this was / is not dischargable debt, i considered myself "judgment proof" and did not even consider Bk because it would show a bad attitude to the government. Again, the huge judgments would not go away anyway.
I stopped paying unsecured debt. Especially credit cards that turned on me the second the judgments hit. 9.9 percent jumped to 24.9 default rate even though i never skipped a beat. When i was told I am NOW a credit risk, I became IRATE. I vowed that since they were so worried about the business judgments that had nothing to do with CC account, I would address that first and pay them back SEVERAL YEARS LATER, if at all. I have had to live my life now for 7 years of horrible credit, and all the usual consequences that happen when you stop paying bills. I even have one of those 500 dollar credit limit with a 60 dollar annual fee cards as my only cc now. (complete joke but better than nothing)
I still have one low dollar property in my name that I use for a rental, so its not considered my residence. I was fortunate enough to have a family member buy the note and become first in line for the mortgage. I dont pay them, so they could foreclose at any time since they are now the bank for that house. The house i live in, I rent from family. And it will be willed to me AND a sibling for later down the road since my rent will of paid for it anyway. I lost my primary residence and first home a few years back to foreclosure. I made the huge mistake of a 15 year mortgage. Not only were the payments suddenly too high with no steady income, but equity would build up too fast. Amongst my several judgments (10 or so) one is for the deficiency on the foreclosure auction. That house by the way, a family member also happened to be at the right place at the right time and bid against the PUBLIC and won. (worry about how all this would look to a trustee even though i didnt move back in)
I think anyone reading gets the general idea of the MESS. Now that the new BK laws came into effect, and the circumstances of the large judgments, i see no sense in filing. I get by through e-commerce and cash. (no real job to garnish) I will always have a roof over my head thanks to my helpful family.
I drive older cars with high mileage and low book values that I am able to keep looking great and maintain myself. I dont have cars or insurance in my name anyway. I love not owing on them and they never get boring because there is always something to tinker with under the hood. HA! The IRS has me in a deferred payment status for my obligations with them.
I was able to keep Uncle Sam happy in all aspects of this case so far, but dread the thoughts of Trustees, Bk judges, etc. I have been dealing with his one problem at a time and dodged a lot of bullets.
Yesterday was one of those days that was another kick in the pants and made me wonder when this will get better. A law firm / collection agency combo is after me for TWO cards that i stopped paying on in 2002. They managed to levy the one and only checking account I was dumb enough to have. Now the bank has froze the account and drew it negative for legal fees and the collection agency gets the 3 bucks i had on deposit. (keeping a balance as low as possible makes being poor more interesting) I think I am on the right track, but a lawyer cant even give me a straight answer since these are not ordinary judgments. (or they know how broke I am) I become confused and nervous and push the problem on the back burner once again. After waiting this long and the magnitude of the bigger debts that WONT go away with BK, should i worry over around 100k in unsecured debt that has already destroyed my credit? I ALMOST let this destroy my life totally and have absolutely nothing to show for my late 20's and early 30's when people should be getting serious about building financial stability. I held off on starting my own family due to this as well. How much damage can the same credit cards I stopped paying 5 years ago, do now? They kicked me when I was down so i completely ignored any attempt they made to work with me. If they were lucky enough to get me on the phone, i would tell them to read my credit report, get a judgment and wait in line. "CLICK"
Speaking of "CLICK" thanks to anyone who has read this far without hitting the X, but this is long enough. Any advice would be appreciated. I cant even afford to go BK right now even if i wanted to. The new laws made it expensive i hear and not always the right thing to do.
Converted to asset case 5/26/2008 [X]
Good luck to you.
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