well i had court on the 30 of october. the guy didnt show up so i automatically won. but monday of this week i recieved a letter from the United States Bankruptcy Court. the guy filed chapter 7 bankruptcy. so now i have to go to a meeting in indianapolis for a meeting of creditors where the trustee for the guy will list all the assests availible for liquidation and use for compensation. basically for those who dont know what chapter 7 bankruptcy is, they take his sh*t and start selling it off and then use the money to pay off creditors. when assests are gone, the remaining debts are eliminated. i dont know the order in which the debts are going to be paid off. but all i know is i might not get paid. kinda sucks , this is alot of BS for a 17 year old to go through.

wish me luck

jon

 

Ouch that sucks.

 

If the bodykit is one of his posessions would you automatically get that since it was what you were owed? Assuming he still has it. Good-luck, I hate court,etc. too bad it had to come to this.

 

i don't think so...unless u can show proof it's YOURS to begin with.
IE he borrowed your lawn mower..well then they can't sell that because that's yours.

everything else is turned to cash and get in line. if he owes a lot of companies then someone that lost $ from a body kit will be last.

 

Yep, it's different in every state, too. Some states you are allowed to exempt a certain amount of personal property, real estate, etc., so he may not even lose everything. Just depends on what the laws are in the state he lives in. Bad deal all the way around.

 

God, this sucks so much...

This nismo1989 guy seemed "okay" for a while back there though. Guess that goes to show you can never tell about people these days.

Best of luck Jon!

 

wow that sucks dude, glad you didnt just shrug it off and say whatever when he screwed you, but it still sucks it has to come to this. best of luck

 

When I dealt with nismo I didnt have any probelms. I bought a headlight when I first started this forum. I paid him and he sent me the light no problem. But hey the internet is always a scarry place

 

True that!!

 

I am a law student and I have also filed a chapter 7 bankruptcy and sorry to tell you but I gaurentee that you wont get anything. When you file a chapter 7 you are basically saying that you dont have anything and thats why you cant pay your debts. If they actullay intended to get the creditors paid off they would have filed a chapter 13 which is a schedule of payments to eliminate debt a chapter 7 is just a way to basically wipe the slate clean and screw anybody that you owe. All the lawyer has to do is list his assets and unless this guy is rich there wont be anything for them to sell since they cant sell his home, funiture, or appliances. I wish it wasnt so but I can promise that you wont come out with anything. I filed a chapter 7 and I was 50,000 in debt and I didnt have to pay one dime.

 

sheesh you seem proud of that fact

 

Its not about pride. The org is here to share information with others and I was just trying to tell him what to expect.

 

Can't blame the guy for exploiting the system's loopholes.

 

Man, if this guy can spend $50,000.00 on god knows what and not pay one cent, We should all go blow 50 g's on turbo kits and upgrades for our cars and never have to worry about payin that shlt back.

 

Assumptions are no better than prejudice. Ever thought if the man filed bankruptcy because his small business failed? His significant other died and had no or insufficient life insurance? Bankruptcy is a very personal issue that one shouldn't make premature judgments or remarks about. Of course, he could be one of the many to screw some people over, but don't be quick to condescend.

 

I hope that you are joking because you do know that in addition to not having to pay one cent back. I cant get a credit card from anyone, no financing on anything, no bank account, and no loans plus I have to pay 4 months rent up front before I move into my apartment so dont for a second think that there is anything good about bankruptcy.

 

i will support that ^ (above) statement as well: circumstances can turn against anyone, at any time, for a myriad of reasons. i always got a good vibe from nismo. i strongly felt that he did not have "malice" against any customer. he posted regularly and was extremely helpful and full of knowledge. i don't think he would make himself so prominent on an internationally accessible forum to just screw people.

my parents filed for bankruptcy years ago and, yes, they were "free" of many prior financial burdens, only to encounter more as the filing process --destroys--- all creditworthiness for seven to ten years. all in all, they had liquidity problems thereafter, as they virtually could not "move an inch": everything was suspect, and they had to rely on cash more often. leaving them perpetually cash-poor. and without the ability to get a loan of any kind. i actually "had" to buy my own father a truck because he could not pay for it.

 

Great. Guess who ends up PAYING for all the bad debt?? That's right folks, YOU and ME in the forms of higher prices. People need to figure out how to handle their money and reconzie when they are in over their head before racking up multi-thousands of dollars in debt

 

not true at all. my husband's father is a lawyer and says it's written into the constitution because it gives good people a chance to become consumers again. bankruptcy is an important part in healing the economy of the entire country. without it, we would all be screwed.

that's the first intelligent thing i've heard anyone say about this whole thing! it's pretty hard to file bankruptcy unless it's totally necessary. you really can't use it to just 'get out of paying someone' you really go through some shiit to file and it's not something that's automaticly approved either you have to need to file in order to file and theres always more to a story than just one side but who knows you may get your money back in the end. it's a federal law you can't talk about a case until after its finalized though so i wouldnt be posting about it here

 

Ah then exactly WHO pays for all the stuff then?? Because SOMEONE has to pay. If the makers can't get it out of the person who bought it, it gets passed on to EVERYONE else correct??

The problem is that people friggin' ABUSE the system. ie.. just rack up as much debt as they can and then just file Chapter 11 or 7 or whatever. Then just lay low for a few years. Or better yet, just rack up as much debt on your primary residence as possible because when you file, they can't touch your house. That's how these big company people file chapter 11 but still retain 5-10-15 million dollar houses. Wonderful ain't it?

 

there are laws to keep people from doing that like you cant file on things that were accumulated within a certain time frame unfortunately if you file you have to file on everything its the laww you cant pic and choose what you file on
there are people that abuse every system though but its not the consumers that ultimately pay if there were no bankrupcy we would pay much more think of all the preditory credit practices by lendors out there that prey on college students and others its aweful not to mention that anyone could sue anyone for anything anymore and totally screw someone

 

1) can they take your primary residence or not? If not, you can rack up whatevery you want correct?

2) Who pays for all the stuff that doesn't get paid for?? Very simple question

People should be educated about money management. Not given 2nd/3rd chances at starting all over. What's a better choice? Edcucation and not getting into trouble in the first place? Or skirting your financial responsiblities every 7-10 years??

 

jeff,

i know you are angry and cynical. you have a very libetarian stance. i can see that. in ways, with the "enron" climate, it is hard not to be. but bankruptcy is not in every case an example of abusing the system. often, very often, legitimate businesses go belly- up. it is the nature of economics. of course there are abuses to government systems, but please do not blanket-statement this issue with your cynicism.

 

WTF?! Anyone want to run the stats on consumer bankruptcy and see how many could have been avoided?

I said friggen' EDCUATION dude. We all to go college to study our ***** off but have no idea how to manage our finanical situation. Why do you thing all those college kids get into CC trouble? Because they are educated about them? I think not.

So instead of trying to get back at me for some odd reason, answer the question so we can learn more about this

 

if he owns a home then its gone but if he rents then its usually exempt

its pretty hard for individuals or small businesses to 'skirt' financial responsibility with bankruptcy

its easier for large corporations like enron to get away with that. they are passing new laws all the time in favor of creditors too because of people abusing it but individually it is not easy. it isnt welfare this has been around for as long as our country its even in the constitution

we would pay a lot more if people had to pay everything back. its better for the economy for people to become consumers again. i am an economist and i studied bankruptcy in school and understand the importance of people becoming consumers again. without it we have severe repression and eventually depression. that is a lot more expensive than bankrupcy. bankrupcy equals to less than 3 mil a year which is change in comparison to the counties commerce but without that 3 mil hit we would all be in serious trouble. 3 million dollars and there are something like 280 million people in the us? thats like .93 cents a year or something

 

sorry there are actually 292,525,065 people in the us

 

But it wouldn't be more expensive for ME individually. At least not in the short run. All I know is ALOT of top execs that have declared bankruptcy still own multi-million dollar houses. I find that to be a slap in the face of the law.

I don't understand your reasoning. If the amount of $ people owe when they file for BR only amounts to 3 million a year, that's seems EXTREMELY low. One top exec's debt could exceed that.

Again education and not getting into trouble in the first place is the cheapest way for everyone

 

Jeff92SE is 100% right. Most small business fail because they make poor financial decisions and even though the math isn’t hard, it eludes a lot of people. It’s easy to forget that the money coming in isn’t all yours. That’s the problem with credit and it’s also exactly what credit card companies rely on.

 

sorry i meant personal bankruptcy. corporations file under different laws than small businesses and individuals. large corps get away with murder. that, yes, is increadibly aggrivating to everyone

 

yeah but what if some old lady slips coming out your door and some hot shot ambulance chasing lawyer files a suit against you and wins even though it wasn't your fault? happens all the time to businesses and they have no choice but to file because the appeal system is difficult and cruel put the blame where it really belongs

 

No I mean top execs from big companies filing for individual bankruptcy are keeping their multimillion dollar homes. I've seen this on TV. They can take most everything but their primary residence.

 

Different situation. That business didn't put themselves into financial harm by purposively racking up debt when they should'nt have.

 

likely a case of political interests at work but yeah that has to be the most frustrating thing ever especially whats goin on with conseco

i know that other thing is a totally different situation but maybe something like that has happened in this situation and we just dont have all the facts i dont mean to argue with you jeff because we share the same concerns as do most sensable citizens but like i said not everyone is getting off scot free by any means
good luck irishmax

 

Good point, but I don't think that applies to MOST small business failures

 

no, republicans do. thats just one example of a million different scenarios that could take place to assume that its poor financial judgement is jumping the gun a bit

 

It is interesting to read this thread. What Jeff says is true, that education and not racking up debt is the best way to avoid the situation, given the fact that you believe that you always have ultimate control over everything in the world around you. In my experience, that is not the case. Things happen in life that are neither controllable or predictable, and therefore can, in certain situations, cause financial problems that cannot be avoided. I agree that if someone purposely racks up debt for the sole purpose of then filing bankruptcy, then that is wrong. It is called fraud, and will probably be thrown out in bankruptcy court. They look at your spending history over the previous year, especially, to see if there is a pattern of that.
Most people, I believe, just get in over their heads for one reason or another- some bad decisions on their part, I'm sure- but I don't believe that people go into life thinking they will ever need to file. As the saying goes, sh*t happens.
Again, the laws about what can be taken and what can't vary from state to state. In Texas for example, you cannot lose your house, and you can exempt one vehicle for each licensed driver. A certain dollar amount of personal property is also exempt. There are lots of other rules as well.

For what it's worth, I've also found out that life is not so black and white, or right or wrong. The reality is that it's somewhere in between.