Help us decide When to File Bankruptcy with $190,832 in Unsecured Debt and see previous episodes at https://jerrybanfield.com/tag/debt/ featuring a look inside our $660K debt snowball!
When is the time to declare bankruptcy, especially with $190,832 in unsecured debts, a majority of which I racked up this year trying to grow my business to epic new proportions, and this is what Laura and I have been talking about as we’ve been reviewing the spreadsheet here, and I’d love to hear your feedback on this, especially in the comments, especially your experience and your stories. What I can see is in racking this up, I did not ask for advice. That’s the lessons I’ve learned. If I would have asked for advice, the majority of this debt would not be here. Instead, I just tried to hustle and do it myself and go research and do things without talking to people along the way, and now I’m learning and putting that into practice. I don’t know what would be best. Laura and I, right now we’re planning to talk with an a bankruptcy attorney to get an idea of what we could do about this, especially with the $190,832 of unsecured debt here.
It might be possible with just me, not Laura, but just me declaring bankruptcy. I’d be interested to know how much of this unsecured debt could be discharged. In fact, if you look at the payments, this unsecured debt is a huge amount of the payments. All these, if you look at the minimum payment, just paying the mortgage, Laura students are loans are in forbearance a lot. The payments would be extremely manageable for us. Whereas 8,700 a month minimum payments plus things like health insurance for 600 a month, groceries for a few hundred a week and we don’t have a whole lot of other expenses. I get massages about the events and I’ve personal training like that’s, that’s about everything I spend money on and thus the minimum payments are so huge on this. If wiping out some of these unsecured debts or just getting them down to some kind of a payment plan that can be finished in three to five years will make a massive difference and to help us focus on things like the mortgage and the student loans that aren’t going anywhere.
We’ve got so many questions at this point though. For example, what kind of bankruptcy could we declare? I don’t know if we’d be eligible to declare the one chapter seven type of bankruptcy where they basically just take everything you have and get rid of all your debt and I don’t know what we’d be able to do with chapter 13 bankruptcy. I’ve done some initial research on this. I’d love to hear your stories in your experience so that I could learn from what you’ve got. We are in the state of Florida, in the USA, which is relevant for the laws. And uh, I have talked to several people who’ve went through various bankruptcy’s. I just talked to a girl, she declared bankruptcy and got to basically start over now with me. Some of my fears are, well, are we going get to keep our house if we declare bankruptcy?
And at this point, the idea of declaring bankruptcy is kind of optional. We can keep borrowing more money and keep scraping together. I can keep working and endlessly hustling and putting out YouTube videos every single day on my YouTube channel, which is a lot more often than many other creators put up. And I can continue putting things up on my website and new blog posts and selling new courses. I’m extremely grateful someone just bought the partner program today. I am so excited about that and I’ve just offered massive additional value to the partner program with the creative commons license to all my courses and yet with all this debt, almost all the income by making this point, just getting paid right back to creditors and interests and I don’t know what to do. I’m researching, I’m Googling. Laura is an attorney. She writes articles for attorneys and the suggestions the state we’re at is let’s go talk to a bankruptcy attorney, show him our situation and start getting some answers.
Things I’m wondering about. Would we get to keep the house the house is the mortgages here, $263,000 the house is probably worth about $300,000 from my point of view. It’d be really stupid to declare bankruptcy before if, and it might not ever. I also have been having an aversion mentally to even thinking about it to my state of thinking. If I even think about things or consider things and to some degree I’m bringing them into reality, which makes it difficult for me as an honest and transparent person to even talk about some things like this because I think if I even say the word bankruptcy or consider it or learn about it in some way, I’m trying to bring it about. At the same time, I’m willing to do whatever it takes legally and morally to reduce the debt, this debt lifestyle that I’ve been living since I went to college and started taking student loans.
Just like in my mind with alcoholism, the first drink is the one that sets in motion, the drunk and all the other problems. If you don’t take that first one, then there’s not all the other ones after it. With the debt. It’s that first loan you take that you’re still paying on 17 years later even though the balance is a fraction of what it wants was 17 years after I started taking student loans, I’m still paying on them and I’ve put in over a hundred thousand dollars already. I’ve already paid a a hundred thousand into student loans and Laura and I still are looking at close to 200,000 between her loans and my loans. Well all these credit cards, I talked to two of the credit card companies yesterday that have the highest interest rate loans at 16 and a half percent and they both said after asking her initial person and going to a supervisor both said that they cannot change the interest rates and they cannot negotiate on the balances.
It appears to me that they’ve got certain procedures in place where you either have to be declaring bankruptcy or with an attorney who’s in the process of negotiating or something like that that either that or I just didn’t call and negotiate far enough down the line. Again, I’d love to have your experience on this. What I’m seeing is I’m willing to do whatever it takes legally and morally today to completely replace this and thankfully I don’t care about my credit. I am not interested in borrowing any more money. Borrowing money can be great. It can be a really valuable tool, but for me, just like I’m an alcoholic that goes to alcoholics anonymous every day and I see that I have no business taking even a sip of alcohol, let alone any more than that. I also see that I’m a person, I’ve no business borrowing any money there.
I’ve proven over the last 17 years as I’ve gotten in debt and stayed in debt and I’ve had great financial times come like today, I just published a video about how I earned $663,000 on Udemy and it really bothers me that I’ve got almost as much debt as I made on you. To me. Now it took me a lot of money to earn that, but the point of this is I’m asking for advice. I’m asking for help. I’m, this is one of the very lowest down there in terms of things that I’d like to talk to you about today, things I’d like you to establish your reputation. This is close to the very bottom. In fact, out of the things I can talk about acceptably in a public format, this is probably the number one thing I would prefer not to talk about and prefer not to ask and for advice about what I can see is I got in this position because I wasn’t talking about stuff and because I wasn’t asking for advice.
I just blasted ahead and made really amazing plans and the last time I borrowed a huge amount of money, a whole bunch of income came in right away from you to me and I have absolute faith in my business that I will get to keep earning because I’m continuing to serve and things like partners, things like all the courses I’ve got up, the big update to just made to my website in the shop. I know there’s a lot of income potential and I’m certain I could just pay all this off without bankruptcy, which brings me the question, is it better to declare bankruptcy or is it better to just try and pay it off as best I can? Laura just shared a story about a friend whose parents should have declared bankruptcy, but they just tried to muddle through it on their own and if Hey, if I can get 190,000 discharged, you’re significantly negotiated down to a three to five year payment plan.
That sounds great to me. That sounds like something I’d be happy to take, but I’m afraid of having it impact my business because with a website like this, there’s lots of bills I need to pay to make money and ultimately my creditors do want me to make money. If you’re going to get any money out of me, I need to have some money coming in. Therefore, I’ve got things like website hosting. I’ve got things like contract labor to help me run the website. I’ve got things like ideally advertising, I have necessary business expenses. Plus I’m wondering if I can potentially by declaring bankruptcy lose any of this equipment in here. This equipment is essential for me earning income and it’d be pretty stupid to declare bankruptcy when it wasn’t absolutely necessary so to speak and potentially lose some of the things that allow me to make income and repay debt and pay my bills and have money to give to other people. One reason that I am committed to living a debt free life is I want to have more to give and I ran some of this debt up by refusing to lower my giving. There was a homeless guy that I, every time he asked free for money, I gave him $20 until I finally looked at all this and said this, this doesn’t make sense for me to, I’ve given him probably $1,000 this year. It doesn’t. He’s single handily responsible for probably a thousand plus dollars of this debt. It doesn’t make sense to be giving people a bunch of money and I don’t have as much to give when I’m giving an all to these credit card companies and yes, I’ve faced the thing mentally that I’m the one who spent all this money. I take full responsibility for this. Nobody forced me to go spend this money. Now I read some books that like you’re a bad ass and make good money and go out there and borrow money if you need to, and I got all hammed up.
I got amped up listening to various things like Your Wish Is Your Command by Kevin Trudeau and his, the money will come into place and just do it and you know while he’s in prison, last I heard, but I think he’s getting out. I take full responsibility for this. I’m the one who took the first student loan when I was in college. I’m the one who listened to advice and and decided it was worth borrowing money to advance my education. I’m the one who did it again when I went to graduate school. I’m the one who got married to my wife knowing that at the time she had over $200,000 in student loans and I take pride that I’ve paid off about 50,000 of her student loans to get them down to where they’re at now. Especially because student loan debt in bankruptcy apparently does not get discharged.
Thus, I’m wondering also about the cars. We have two cars, both of which I love declaring bankruptcy. What impact does that have on our car is this one loan is secure. The $19,000 loan, wait, wherever that one is, the, the smaller business loan, one of the business loans is secure where the credit is secured. Oh man. Yeah. That one of the business loans is secured with a this one, that business loan is secured with the car. Thus, if we sell the car, that business loan would instantly be out there, but you’ll also notice that business loan is one of the lowest cost business loans. Another one of these loans I made directly to somebody who worked for me and regardless of whether I declare bankruptcy or not, I’m not just going to discharge the loan I made to him. I hold the loans that have been made directly to me by another person in higher regard than I hold the ones that have been made to being by somebody I don’t know, like a bank or an unnamed institution.
And I’ve also asked friends and family for money if they’d help me refinance. I collectively know people that have at least a million dollars in the bank and every single person, even people having 50 plus thousand in the bank and I’m very low expenses have said they wouldn’t give me anything at all to help with my loans. Everyone I’ve asked has universally said no, and that’s been very frustrating also, and that maybe people say no because they realize you can just do things like declare bankruptcy and have a lot of it wiped out and that that makes sense. Thus, I’ve shared this with the understanding that I’ve read a lot of comments on my YouTube channel, seeing and message that I’ve got people saying, Hey, Jerry, you know, I’m in the same situation you’re in, or I can relate a lot with what you’re saying and I could use the advice my family and I, we could use any advice or prayers or suggestions.
I am sharing this because this is necessary for me to be of greatest service to you. My business is all about honesty and transparency and teaching you what I’m doing, what I’m learning and this is what I’m learning about currently and I’m excited that this will be a blog post on my website. Also, once we’ve got it done, so I’d love to hear your comments. Go ahead and drop them on the YouTube video. If somehow you haven’t subscribed yet and you want to make sure not to miss these police it, that subscribe button on YouTube and turn those notifications on if you actually want to see the videos. I look forward to reading your comments. I love you. You’re awesome and best of luck with your debt.