A young wise man said to me, "Work with what you have, then exceed the bar"
A person may say, you should do the necessity tasks in preparation of a large trip that is planned, however quite frankly, I think one should do what I am doing on a monthly basis , then they would never have to deal with the back fucking office.
I was up till 3am last night. I filled bankruptcy in 2011, and every month you have to keep every receipt, log them into a ledger in date order- take them out of order and put them in categories; grocery, gas...crap pile...then you enter the groups onto the budget sheet. The trustee takes off your expenses, takes the left over income, which is called residue income, splits it in two. The trustee then takes half to pay all the debt and you get to keep half. You do not get to decide what your expense's are. If you need 7 new pairs of ginch, you are shit out of luck. The more money I make, the more they take.
I remember happily thinking about how I could start fresh after filing bankruptcy! I went into the trustees office, saying I am sure I am 26000 in debt, please whip it clean!
Well, my dream of clearing my financial baggage was doomed in about 10 mins as he sat down with me and gave me the real picture. I felt like I was being prosecuted, it went something like this:
"Are you telling me you never at one point, did you not see the box to check off extra tax on your income tax forms, when you work for 4 unions? You have Federal debt of about 10,000 and we are only offering to cover 5000, most of these are penalties, however now its too late and you will have to pay 10,000 on your own after the bankruptcy." "you have 21 months to save up for your Federal penlity debt"
"you are 40,000 in debt and you make 65K a year" "however, I see you have changed careers, and this may bring down your yearly income". "Do you recall signing co-sign forms for a truck?" I said, no sir.
"You owe 8,000 on what looks like a work truck and also some money on furniture, are you able to reach the other person on this debt?""you co-signed for this person" I said, "no Sir, he left me a post it note and moved to Texas, the furnature was returned"
"Ok miss, whatever your situation you are responsible for this entire debt as well"
I sat there like I did not beleieve him, I was shocked.
I felt sick. Really sick. I said well I can only afford about 200 a month towards my bankruptcy.
The first payment was over 500 dollars. I was however relieved that the harrassment from creditor whould stop.
I spoke with a financial broker today, 40K is apparently peanuts and I fucked up. The truth is I barely paid the bankruptcy because shit just kept coming up, for example: When working for a union, and the union decides that yearly insurance is a necessary purchase, rather than auto plan. In order to keep driving clients for work, I had to pay 1400 in one shot. According to my trustee that is not a expense.
The only expense allowed is food, shelter, the car payment to work and basic utilities, like a phone.
It looms over my head like a fat zit waiting to pop, there is hope...its almost over now.
After you file the bankruptcy your file generously stays at a R9 for 7 years. The term R9 stands for 9xRotten credit. In financial terminology R9 is:
"R9" means that particular account has passed 120 days late, is very delinquent, and has been written off as a bad debt by that company. The bad debt is either charged off or sent on to collections. This does not mean, however, that you do not have to pay this account, or that the company cannot continue to try to collect the balance due.
R9 credit rating remains on your credit report until it drops off after seven years. Until that happens, you will be unlikely to qualify for any new loans or credit accounts. The "R" scale is progressive, from R0 for new accounts, and R1 for current accounts, and up for each period of lateness, or an R7 payment plan, R8 repossession, or R9 charge off/collection. Where you want to be on every account is in the R1 category.
By showing the "R" scale, potential lenders communicate to each other valuable information about your payment history activity, from which they can determine credit worthiness and risk in repayment of any new loan or credit account. You can pay off an R9 account, and request in writing via certified letter to have the company or collection agency notify your credit reporting agency (one of the "big 3" agencies (Experian, Equifax, Trans Union) to remove the R9 rating.
Giving you an R9 credit rating is mean, but it is required of credit card lenders by federal law to avoid inflating company future earnings projections. You earned it by being a poor credit risk and not paying your balance due. It is unlikely that you can get the R9 removed from your account, even after paying off the balance due. Your report may show “account paid” or a zero balance due, but the R9 classification will remain. Therefore it is in your interest to be informed about the “R” system, and avoid being so late that you are marked with an irretrievable R9.
After staying up till 3am entering those stupid receipts, some only a dollar value, the shock value came and I realized some expenditures we take for granted, are defiantly a piss off, for example: 100 dollars a month on coffee, my food bill was crazy high, like 500 a month from August to October.
for one person? I don't fashion shop anymore, however I did see sequence's that still show signs of a shopaholic. for example, there were like 4 tubes of hand creams in assorted scents, a tube of hand cream takes about two months to use up- so why did I buy 4 and not 1? Toilet paper, 30 rolls- this I remember clearly, I don't even have storage for 30 rolls- however I remember my kids using a whole roll of toilet paper for one sitting- I live alone now, guess I forgot.
I was instantly depressed, I also noticed I cleared about 5K a month for the months of August and September, was looking at what the hell I spend it on and basically a small vacation and my birthday.
After I started the process I could not stop and started to go through massive paperwork I had not completed. I started talking to my self, recipts everywhere. The fat PUG "Sushi", noticed the more I did , the more stressed I got, and laid her fat ass on the whole pile causeing me to get mad at her, and then I was feeling incredibly horrible because she only cares.
I have a massive task list now and I will soon organizing a proficiently working, Fucking Back Office that is simple and effectively- believe it or not I am going to re-write and re- calculate the entire months of the fucking bankruptcy so it is a dam eyesore.
So my dear friend said some very valuable things as he reefed through the massive receipts and said, who the fuck does this and why. I quickly paraphrased his monthly income, his expenses and then I said with venom, "how much should, you have saved?" The truth is , my friend should be a very rich man in his early age.
Vancouver is expensive and easily a trap to spend on food, quick coffees, lattes..eccentric things .. the back office drawer was full of shit, that I had planned on started and never quite did. The next folder sitting as a eyesore was the home inventory and insurance of content items that were never completed.
Every nook n cranny has to have some sort of organization, reason and rhyme- my life will be of a container-without any exceptions. At the same time, I must create-"Work with what you have"
This statement has come up before in horoscopes and readings for fun. I am creative and have a abundance of supplies- so in order to get rid of it all I will need to create it and sell it. Time? I have no idea.
I do know that once the items are all sorted, I will not feel so scattered! So before you decide to file bankruptcy, try to look at what you spend and sort with what you have. Bankruptcy is good for some, and you can rebuild your credit in one year. However I do not think it was the best choice for me. I honestly think I could of paid the 40K off on my own had I looked into myself and really analysed my income, spending and simple budgetting. I have come a long way from 2006/07. Those days were dark. I see the light coming closer at the end of the tunnel!
GVix Signing herself to the box