Going bankrupt vs trying to pay it back?

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bigballin6161

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I dont know where else to ask the question but anyone with any knowledge please point me in the right direction. About 5 years ago I lost over about $150,000 in bad inverstments. I lost everything. I lost assets, cash, and huge debts. I finally finished paying off people i know and the only ones left are credit card companies and some other shit which is about $35,000. All of them are at collections and have been for years. My credit is absolutely destroyed right now. The good news is that my offline business is doing very well, but in all honesty it still would probably take a very long time to pay it back. Should I just call it a day and go tits up since my credit is already fucked? I could use that 35 grand for a ton of other shit including growing my offline business and/or online ventures. Btw im in my mid 30's and dont and dont want to spend another 5 years of my life in debt, I actually want to enjoy having some cash already.
 
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bigballin6161 said:
I dont know where else to ask the question but anyone with any knowledge please point me in the right direction. About 5 years ago I lost over about $150,000 in bad inverstments. I lost everything. I lost assets, cash, and huge debts. I finally finished paying off people i know and the only ones left are credit card companies and some other shit which is about $35,000. All of them are at collections and have been for years. My credit is absolutely destroyed right now. The good news is that my offline business is doing very well, but in all honesty it still would probably take a very long time to pay it back. Should I just call it a day and go tits up since my credit is already fucked? I could use that 35 grand for a ton of other shit including growing my offline business and/or online ventures. Btw im in my mid 30's and dont and dont want to spend another 5 years of my life in debt, I actually want to enjoy having some cash already.
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my opinion and what i have learned from creditboards, is that you can almost fully recover from a BK in 2-3 years. IF you have large amounts of cash coming in, then file for BK and save your money. If you already own a home, then why not? what other big purchase would you need financing for?

But the best thing to do is do your research and decide for yourself.
 
If you think if you can pay it off in 5 years that gives you 2 years to start rebuilding your credit vs. being screwed for at least 7 years by having bankruptcy on your report.

Here is how I'm seeing it.

Take a fall, be screwed for minimum 7 years begin slow process of trying to rebuild credit.

Or, pay it off in 5 years and by the time 7 years comes around I already have 2 years time put in on rebuilding the credit.

Question you need to ask yourself, would/will I need to borrow money in 9 years or 7?
 
bigballin6161 said:
I dont know where else to ask the question but anyone with any knowledge please point me in the right direction. About 5 years ago I lost over about $150,000 in bad inverstments. I lost everything. I lost assets, cash, and huge debts. I finally finished paying off people i know and the only ones left are credit card companies and some other shit which is about $35,000. All of them are at collections and have been for years. My credit is absolutely destroyed right now. The good news is that my offline business is doing very well, but in all honesty it still would probably take a very long time to pay it back. Should I just call it a day and go tits up since my credit is already fucked? I could use that 35 grand for a ton of other shit including growing my offline business and/or online ventures. Btw im in my mid 30's and dont and dont want to spend another 5 years of my life in debt, I actually want to enjoy having some cash already.
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The bankruptcy laws are there so that people are able to have a fresh start. If you feel this will give you a fresh start (and it seems it will) and there is no malice on your part to deliberately screw over creditors (also clear that that is not the case), you have the law on your side and you should do it.

I speak from experience on this. There is a lot of pressure from creditors and from family and friends if they know your situation, but really, your credit is already damaged so that shouldn't be an issue. And assuming you'll get on track, the bk will disappear off your credit report in 10 years. But still, if you need credit before then, chances are you'll still get it, just with a higher interest rate.

Good luck!
 
I think I will head over to a bankruptcy forum and ask about internet marketing.

Seems like there's expert advice wherever you choose to seek it.
 
So you can still get credit with bankruptcy? ONly with higher rate? Even for a house? If this is the case I would do it for sure. BTW im in Canada if that makes a difference!
 
cataratas said:
I think I will head over to a bankruptcy forum and ask about internet marketing.

Seems like there's expert advice wherever you choose to seek it.
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No but alot of people here are smart business people.
 
Markthedude said:
If you think if you can pay it off in 5 years that gives you 2 years to start rebuilding your credit vs. being screwed for at least 7 years by having bankruptcy on your report.

Here is how I'm seeing it.

Take a fall, be screwed for minimum 7 years begin slow process of trying to rebuild credit.

Or, pay it off in 5 years and by the time 7 years comes around I already have 2 years time put in on rebuilding the credit.

Question you need to ask yourself, would/will I need to borrow money in 9 years or 7?
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In 5 years that $35,000 can make me $100,000
 
Going BR is not the end of the world. If you become successful again trust me the banks will lend to you money no matter what your credit rating is like. They will just require bigger and bigger deposits depending on your credit rating. If Zuckerberg had bankruptcy in his past, the banks would lend to him now. Of course we aren't all Zucker.

However you really should do everything in an incorporated company. In most countries this alleviates the need to go personally bankrupt. You just tip the company and move on. Although even in a company they often ask you to sign personal guarantees. Avoid these like the plague but if you have to sign them, then try and make them only small ones.
 
Well I don't know what the deal is in the Canada, but here in NZ you are forbidden from owning a business while bankrupt which could potentially screw you.

All countries and states have their own unique bankruptcy laws so you really need to see a lawyer and get the straight facts before you do anything rash. A quick Google search shows that there are some pretty harsh restrictions if you go bankrupt in Canada including asset seizures over and above the bare necessities for living, and forfeiture of any assets gained until you are discharged from bankruptcy. See a lawyer.

Personally I'd just work hard and make the $35K. If the accounts have been in collections for a while then a good lawyer or credit counsellor should be able to negotiate your total down significantly.
 
I would file for Bankruptcy any financial advisor would tell you to do the same. Start over fresh and make some serious cash.
 
starcity83 said:
I would file for Bankruptcy any financial advisor would tell you to do the same. Start over fresh and make some serious cash.
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That is exactly what I wanted to hear...this has been a fuckin neverending nightmare.
 
You can Pm me if you'd like. Been there, can share real life exp.
 
I also can point you in the right direction to help with you credit score. No strings, like I said been there and wished someone could have given me certain advice.
 
Entrepreneurial type people go bankrupt all the time...they re-organize then go at it again and become millionaires.
I was into real estate investments before the criminals caused the meltdown...so i KNOW about bankruptcy..lol

speak with a lawyer about the options, what chapter you are eligible for and HOW many things you can include...even putting it off for awhile isn't a bad idea cuz you can't do it again right away. Just be aware the creditors can send a letter to your bank and seize your account. HIDE YO CASH
BEST O LUCK

P.S. credit score schmedit score....propaganda put out by banks so people will pay their bills.
hasn't hurt me a bit
 
cataratas said:
I think I will head over to a bankruptcy forum and ask about internet marketing.

Seems like there's expert advice wherever you choose to seek it.
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Lighten up Francis!

What do you care for anyway? We are all here to help and though I may not be an expert I can speak from experience. If I can help this person out in any way shape or form I'd be happy to.

Ps you bug me!
 
If you have assets that will cover the debt then you will not be able to file bankruptcy. You might get away with a chapter 13. If you call them one at a time, ask them what they would settle for. If it is agreeable then get it in writing before you send them any money. Depending on how long it has been, you may get away with 50% reduction.
 
TNphoneman said:
If you have assets that will cover the debt then you will not be able to file bankruptcy. You might get away with a chapter 13. If you call them one at a time, ask them what they would settle for. If it is agreeable then get it in writing before you send them any money. Depending on how long it has been, you may get away with 50% reduction.
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Zero assets. I also heard they might settle for up to 25%. If this is the case I would go for it.
 
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