Tuesday, March 16, 2010

Money Rant Vol. 1 - Bankruptcy

The next few days I will be ranting about money. It is an issue in everyone's lives...including the rich; just in a different way...everyone wants their money for charity instead of bills. Why bother, right? Well, my credit score sucks because of stupid decisions I made when I was young and decisions I've made since. I want to buy a home, but can't and frankly, I'd like to rant about those who still can even though they should be the scourge of the world and not me!

First people on the stage awaiting my rotten tomatoes are BANKRUPTCY filers.

There are 5 reasons I know of that people file for bankruptcy most often...all of which have one underlying cause...a person made a decision and now refuses to accept the consequences.

Reason #1, business failure. You're living the American Dream. The products are flying off the shelf or your services are being tapped from every direction. Life is good...at least you think. Something catastrophic happens. An employee sues your ass off after an accident. Maybe one of your vendors screwed you over and your product required a huge recall, crushing your reputation and thus crippling your revenue stream. Maybe you are just trying to sell the wrong product to the wrong set of clients (think Patagonia Retailer in Jamaica). At some point though, your business is worthless and you owe more money to everyone and their dog than you could make in a lifetime.

This sucks, but that's what insurances are for. Change your company if it isn't working. Captains go down with sinking ships...but real entrepreneurs make lemonade when life gives them lemons. Neither loose metaphor files for bankruptcy. Do not just bail out on your debts.

Reason #2, poor investment decisions. Whether you got greedy and triple refinanced your house, banking on that ever elusive windfall, or just got suckered by a ponzi scheme, you still made a decision to invest your money in something WITHOUT a guaranteed return on investment.

Whine to me about how Bernie Madoff stole your grandma's retirement, fine. She still gave someone her money to invest instead of opening CDs or any number of secure investment options. If you invest more than you can afford to lose, you deserve to lose it all.

Reason #3, divorce ate you alive. OK, so I'll admit I'm extremely judgmental about this considering I've never gone through a divorce and both mother and mother-in-law have (let alone countless other friends and family members), but I am STILL married, so shoot me. You took a vow, you made a commitment...now make it work. OK, fine so the wife is leaving you because you cheated on her or beat her or neglected her and/or the children. If she cheated on you and is getting the house...then you and your lawyer are idiots. Those are ALL decisions you made...suck it up and be a responsible adult.

Reason #4, you're horrible with money (meaning you spend without caring if you can afford it or not). There is no sympathy for you. You spent money you didn't have and now want to blame it on the credit card companies for preying on the weaknesses of Americans or whatever excuse you come up with.

Reason #5, medical bills. It's hard to throw a stone at a cancer victim or their families. I will say, that life and medical insurance should be mandatory for any self-respecting adult, but job loss prevents these in some cases. Because this is more individually based...I'll refrain from any sweeping generalization. I will say though, if you had an opportunity to purchase insurance (medical, life or supplemental) and chose not to because you couldn't afford it...you still made that decision. Unfortunately your family members are the ones who have to deal with it once you die...or hopefully survive.

I'm sure there are exceptions out there like identity theft...guess what you were the victim and thus it wasn't your fault...unless you are too stupid to not give the phishing scheme your bank account number and PIN.

Why should your debt be erased? What kind of person walks away from their debts and expects to be "forgiven" on their credit score in a couple years? This goes against every moral fiber in my being...folks that's not saying much for you. The fact that my old boss filed for bankruptcy because he's a low life, later foreclosed on 2 homes (he blames others...see #4) and has nearly perfect credit now makes me want to vomit. America is a very litigious society and this is what we get for it. People can walk away from all responsibility as long as they fill out the proper paperwork and have good council.

I would like to see people who break the rules get punished instead of a helping hand. People who take responsibility for their decisions and actions are the ones being punished and carrying the weight for their slacker counterparts.

No comments:

Post a Comment