Bankruptcy?

[james'mommy]

debt consolidation is not settlement. i worked for a credit card bank for over 10 years and i spent many of those years as a credit analyst. debt consolidation is a 3rd party agency that works with the banks and the consumer to lower or eliminate interest and fees. the goal is to have the accounts paid off in 5-7 years. it's better than bko and it's better than settlement. at least with debt consolidation you are fufilling your financial obligation instead of trying to get out of it. if you use the cards you need to pay the balance. anything else is irresponsible

 

[CarolA]

You never know. I think it's pretty common for people to declare bankruptcy then go to Disney. You see it all the time on the boards, even this thread -just glance at the signatures. Now, the poster may well be in disguise, I agree, but the whole thing has the ring of truth to it.

Remember this troll claims they didn't declare bankruptcy they just quit paying thier bills and now they still have a credit card etc... The story doesn't add up since the fact is that by the time they finally got around to dealing with the credit card companies they were so far past due most of them had already taken the "loss" and at that point are a LOT less likely to deal with you. Plus the credit card folks have heard EVERY sob story known to mankind and aren't moved by "my sister got sick!"

Not to mention the "overpayment" the IRS??? Come on now folks.

(By the way Troll, I hate to break this to you, but you still would have paid taxes on that money. Folks anyone who would post that reason for "not having to pay taxes" is a troll. Think about it!)

 

[thinkinaboutdisney]

So what everyone is saying is that I should never go on vacation again? I think you should learn more about someone before you judge. This wasnt even my business it was my husbands.( I married into it) He got into a car accident and it injured him, and recked our equipment. And since everyone here is so quick to judge I will fill you in. He was hit by a drunk driver, he was the safe one. But insurance doesnt cover everything. You can get stuck with a $3000 towing bill like we did. There was no way we could pay all of the bills without our business. I could have said take the money and run but we didnt. I gave them every cent that we had and paid it. The money that I saved was from my working not from the money left over. Sorry to hear that everyone judges you without getting to know anything about you.
Obviously nobody here ever had their own business. You can pay what they call estimated quarterly taxes! If you overpay you get that back, that is what we did. I always like to over pay my taxes just like 1000 of others who like to get money back at tax time. (It is right on your W4 form)
And the credit card is MY personal card. All of the cards were in the business and my husbands name.
And what is this Troll thing?? I dont live under a bridge, but hey I was close to it.

 

[thinkinaboutdisney]

Thanks for your hospitality.

 

[CarolA]

Obviously nobody here ever had their own business. You can pay what they call estimated quarterly taxes! If you overpay you get that back, that is what we did. I always like to over pay my taxes just like 1000 of others who like to get money back at tax time. (It is right on your W4 form)
And the credit card is MY personal card. All of the cards were in the business and my husbands name.
And what is this Troll thing?? I dont live under a bridge, but hey I was close to it.

Well,there may be other reasons this business went bankrupt! You seem NOT to understand you PAID taxes on those "gains"

So if any of this line of stories is true while in past years you might have gotten $1,000 back this year you got LESS because you paid taxes on these gains. That's called paying taxes. Just beause you didn't write a check doesn't mean you "didn't pay"

And tax overpayments are not "right there on your W-4" That's the amount your employer paid on your behalf (which brings up a question in itself. Most folks who own their own business and pay quarterly don't get a W-4)



And if the business had this much money to "overpay" then how did you get so far in debt? Perhaps if you hadn't overpaid the IRS you could have paid the $3,000 towing bill????

I could care less if you go on vacation, but I don't think you should be posting finanical advice!



(A troll is person who makes up stories to post on message boards LOL!)

 

[delmar411]

You never know. I think it's pretty common for people to declare bankruptcy then go to Disney. You see it all the time on the boards, even this thread -just glance at the signatures. Now, the poster may well be in disguise, I agree, but the whole thing has the ring of truth to it.

Yes that's true. We not only declared Bk but went to WDW while in BK. WDW was paid for 6mths before we were forced to declare BK and we noted this trip in our BK and it was approved because the airline tix were non-refundable.

Also we should have filed in the middle of 2005. We held off for 2yrs in the hopes we'd be able to raise up the 35k that the CC companies wanted IMMEDIATELY IN FULL. But when they attacked DH's paycheck and would have made us homeless because of how much they were taking, well gee I think we did the right thing. We more than paid back the actual funds we borrowed from the CC's...more like 3-4x over so I don't feel bad for them at all.

So feel free to judge but until you've walked a mile in someone's shoes don't pretend you even have a clue about them.

 

[thinkinaboutdisney]

hmm you learn something everyday (about a troll) I would have never guessed.

I didnt say that I "didnt pay the taxes" I meant that since I had a large return coming, I didnt have to come up with the money out of pocket.

I also was referencing the standard w4 form for an example. Most people have them and yes if you are self employed you have one too. I was just stating that if you claim 2 or 4 you will be paying a different amount of tax which means that you can either get money back or own money.
When you pay estimated quarterlys you accountant says how much do you think you will make this year? You pick a number usually higher than the previous years and then pay that rate. We were paying almost $5000 per quarter and we didnt do as good as the previous years, so that meant we overpaid.
I dont understand why you would assume that this story is made up?? That just puzzles me, does this message board not get new people or something? I just so happen to come by it on a search engine about disneyworld.
I dont understand why I got so much heat when there are other people who claimed bankrupsy and then went to disney a few months later. I am not saying anything bad about that just because I dont know their situation.

 

[Toby'sFriend]

I dont understand why I got so much heat when there are other people who claimed bankrupsy and then went to disney a few months later. I am not saying anything bad about that just because I dont know their situation.

whatever.
I'm sorry but your advice to the OP was to stop making her payments, on purpose. Then call up the lender and make up a story "oh I'm broke and I don't have any money except this couple thousand dollars I was able to borrow from my sister." Then settle the debt for a fraction of the balance and walk away "debt free" and take that Disney vacation.

Hey, whatever caused your particular circumstances aside, I simply don't do dishonest myself. LYING to your creditors about your finances and your ability to make the payments in order to have debt forgiven is just that -- dishonest.

OP, I'm sorry the thread turned here. I hope things get better. Is there any chance of taking on a 2nd job to get the income back up to what it used to be?

 

[IluvKingLouis]

Sorry if this is a dumb question, but what is a Troll? and what is gained from Trolling? Myself, I'm a regular , but I haven't heard this term before.

 

[Tinkerbelle32]

I think it was because you were basically getting online and telling people how to cheat your way out of paying your credit card bills. Alot of times when someone posts something extreme(cheating, lying, etc.) and has a very small number of posts it is a person(troll) trying to get people upset. I don't think you are a troll, but totally disagree with your manners of "paying off your debt"!

 

[delmar411]

Sorry if this is a dumb question, but what is a Troll? and what is gained from Trolling? Myself, I'm a regular , but I haven't heard this term before.

A troll is a person who enjoys causing uproar and drama on chat boards. The only thing gained is amusement for the troll.

Most ppl prefer to not 'feed' the trolls. No reaction and they will find someplace else to go.

 

[LisaNJ25]

We used a credit counseling company called genus.org a few years ago. Towards the ends they changed hand or names to http://www.myafs.org. They called all of out cc's companies and either had out interest reduces or 100% removed.

I had no problems at all with this company. I also had 4 other friends used them with great results. On my credit report it did say something about using a credit counseling agency but that dropped off.

 

[smkiss02]

You never know. I think it's pretty common for people to declare bankruptcy then go to Disney. You see it all the time on the boards, even this thread -just glance at the signatures. Now, the poster may well be in disguise, I agree, but the whole thing has the ring of truth to it.

I see it all the time too. Then the poster comes back and says that the trip was a "gift". We're filing for bankruptcy but HEY! we're going to WDW three times this year

OP, I'm so sorry you're going through this. I'm sure there's lots of message boards with great advice out there.

 

[james'mommy]

We more than paid back the actual funds we borrowed from the CC's...more like 3-4x over so I don't feel bad for them at all.


that's called interest. it's not like you did it out of the goodness of your heart. you had a contractual obligation

 

[tonilea]

I could have just claimed bankrupsy and had it all erased not paying a penny. I gave them all the money we had!!!!Like I said my business flopped, we used the money that we had left in our checking from the business. We wernt able to pay the minimums for more than a year. And this is exactly what happens when you go to those debt consolidators, they just do the work for you. And sorry this is the first time I am on this disboards.com. doesnt seem to nice here
Oh yes I did get me 1099's and they were filed at the accounts and I didnt have to pay anything because I had a huge return. (I overpaid on my quarterly taxes)

She is exactly right. What she did is identical to what many debt consolidation/settlement companies do.

I don't really agree with the tactic, but it is probably better than bankruptcy.

 

[kylara]

Before you file bankruptcy make sure you know what it will entail. They redid the bankruptcy laws last year so that it is harder to just have debt discharged now. The article below has some information that might be useful.

http://www.nolo.com/article.cfm/obj...611D3EF9/213/161/176/ART/?e=b18a0000204032001

 

[Floridagal23]

You absolutely will be responsible for the "discharge of indebtedness" income. So, if you are relieved of debt (IE you settle for less) then you will be taxed on the portion that you are relieved of.

I believe that there is an exception for debts relieved pursuant to a bankruptcy, qualified farm indebtedness, and now for homes foreclosed upon after 1/7/07, the foreclosure.

 

[Lady V]

Good luck Hope this helps you.
I am debt free, only one credit card open but with a zero balance. We are planning a disney trip to celebrate! Which will be paid with from saving cash not credit.

Now for those of you thinking hmmm I could go on a shopping spree and then do this, i dont advise it. My business flopped and this was mostly business debt, and some personal. It wasnt like I was planning to do this, because that is just wrong.

ummm...it is still wrong...why not pay back the people you actually owe the money to? Just because they settled doesn't mean you didn't kind of rip them of in the process.

 

[gobledygook]

OP - try this website too, llnoe.com. It's a website for followers of Dave Ramsey's program and book, Total Money Makeover. You will get tons of advice and encouragement there. Good Luck!

 

[izzy]

So what everyone is saying is that I should never go on vacation again? I think you should learn more about someone before you judge. This wasnt even my business it was my husbands.( I married into it) He got into a car accident and it injured him, and recked our equipment. And since everyone here is so quick to judge I will fill you in. He was hit by a drunk driver, he was the safe one. But insurance doesnt cover everything. You can get stuck with a $3000 towing bill like we did. There was no way we could pay all of the bills without our business. I could have said take the money and run but we didnt. I gave them every cent that we had and paid it. The money that I saved was from my working not from the money left over. Sorry to hear that everyone judges you without getting to know anything about you.
Obviously nobody here ever had their own business. You can pay what they call estimated quarterly taxes! If you overpay you get that back, that is what we did. I always like to over pay my taxes just like 1000 of others who like to get money back at tax time. (It is right on your W4 form)
And the credit card is MY personal card. All of the cards were in the business and my husbands name.
And what is this Troll thing?? I dont live under a bridge, but hey I was close to it.

I've never heard of a $3,000 towing bill before. How far was it towed? Yikes!