Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Woo, all right.
Well, happy Friday, caught upwith the attorney and, long
story short, we're going to beable to file chapter seven.
So the gist of it we are Iwon't go into like our entire
personal finances and businessfinances, but just to keep it
simple.
So I have a very above medianincome and so between the two
(00:23):
types of bankruptcy there'schapter 7 and chapter 13.
The basic difference is chapter7 overnight, if the court says
yes, you are instantly debt free.
Now, if you have some stuffthat are like luxurious or like
bougie, you can't hang on tothem.
So, like I have some sportcards, I have some firearms, I
have some cash, and so some ofthose will be surrendered to the
(00:48):
trustee, they'll get sold andthat'll help pay off some of the
debts.
The alternative is a chapter 13.
That's where you keep all ofyour assets and your liabilities
, but for the next five yearsmaybe three you make a monthly
payment to your creditor account.
That's not enough to cover allthe debt, but it's at make a
monthly payment to your creditoraccount.
That's not enough to cover allthe debt, but it's at least a
good size debt amount.
(01:08):
And after five years you hityour, your limit, whatever, and
now you're done paying off yourdebts.
Uh, when you're like at themedian income or below, you
usually qualify for seven.
If you make a big income, youqualify for 13.
Well, I'm above median, so Iwould normally qualify for 13.
However, the business lossesover 50% of a combination of
(01:33):
business losses, as well as thebusiness debt, is far higher
than my personal debt.
So we're other than, like ourmortgage and a little bit of
student loans.
We're debt free, so we don'thave a whole lot of debt
personally.
Um, and so our business debtaltogether is much higher than
our personal debt altogether.
So because of that, we can't.
(01:55):
The gist of it is weautomatically end up in the
chapter seven option because wecan't qualify for 13.
You end up in seven.
And so now, like we can qualifyfor an overnight debt
forgiveness like it's not goingto be cheap.
Like we pay our attorney's fees, filing fees, we're going to
write a check because we havesome assets that we're not
(02:16):
allowed to keep.
It's like we have a lot of cash.
We can't keep all the cash, wecan just keep a little cash.
So a lot of that lot cash willgo to a trustee, um, like some
memorabilia, some like personalpossessions that are valuable.
Those will get taken andliquidated to pay off the debt
to the trustee.
But it will be debt free.
We won't owe the landlord thesba, the seller finance note,
(02:40):
like it's gone.
It's gonna gone and like thisuncertainty I've had for a month
, it's now certain, like it'sgoing to be over really fast.
And I thought I was going to bealmost 40 by the time this was
behind us and it's going to belike quick.
Our credit score is still goingto take a ding, it's still
going to show bankruptcy,delinquency, whatever.
(03:02):
But it's not the end of theworld.
It's going to be that way.
Whether we do a overnightoption or a five-year option, we
still get dinged either way.
So I am stoked.
I cannot believe it.
Now what we do is the attorneybasically sends us like a super
detailed Word document and Excelsheet.
It's basically confirming yes,this is everything that I own,
(03:24):
yes, this is every debt that Iowe, and it's because it's a
federal thing that you apply forso you can't lie.
If they find out that you lie,like they can take you to jail.
Like it's you don't want to dothat.
You got to tell the truthupfront.
Um, that gets a no brainer.
And so all that to say, uh, wenow like document, a super
(03:44):
detailed document of our assetsand our liabilities.
Uh, we then submit it to thecourts.
A judge says, yes, this looksfine or no, this looks terrible.
And then, um, and then we'redone, so we could file as early
as like a week or two from now,which is lightning fast.
That's gonna be kind of crazy,um, so, yeah, I I don't know
(04:10):
what to say I just arrived and,uh, now we're just hanging tight
.
So so I just arrived for apickup after school, um, but
like it's gonna be over with anddone with.
So, um, yeah, can't really workthe side hustle so much right
now, can't do a whole lot ofbonus things, so we're just
(04:30):
going to hang tight and justwait for the applications.
And so, uh, we still have to dothe, we still have to engage,
like normal business.
So, um, the bank called meagain today that's the second
time this week Like, hey, nathan, how's it going?
Let's catch up on the phoneTalk soon.
They did that.
(04:51):
I haven't called them back yet,but like, we're going to do the
member event this Saturday.
We're going to do a nutritionthing on Sunday, like we're
going to do business as normaland it sounds bad, but there
might just be like a blindsidemoment where it's like all right
(05:12):
, the business is now closed andthen it's up to the landlord
and other folks Forget to keepit going.
Wonderful, thank you,appreciate it, and then it'll be
that.
So I really, really, really wantto give our members a 30-day
heads up.
I don't know if that's going tohappen.
Uh, from what it looks likeit's going to be just like an
(05:33):
overnight decision from thecourts and now I, and then, like
within a blink of an eye, Iwill not owe the bank or the
landlord a dollar, and sothey'll take want to take
possession of those things andstart liquidating them and be
made whole and get a payingperson back into their coffers
and they'll probably shut thebusiness down really fast.
(05:54):
They'll probably liquidateinventory really quickly.
I don't know.
So, yeah, I just need to waitand tell.
What do I do?
So I talked to the lender, thetwo big things we were curious
about do we tell vendors aboutwhat we're doing?
Answer was nope.
There's nothing to announceother than we're filing an
application with the state.
(06:14):
That's just gonna cause concernand panic for everyone.
No, not today.
I asked him about buying mywife a replacement vehicle.
Her car is breaking down.
It smells like burnt rubber.
It is on the edge of its life.
He said nope, nope, hang on.
Let's wait like 30 days tillthe the proceedings are done and
then go buy a vehicle.
Your credit will rebuild.
(06:34):
Cool, I can do that.
Ask about side hustles.
Uh, the photo booth thing.
Should I?
Can I do that?
Can I have a little like pocketcash?
Should I stop that right nowand wait a little while?
He said Nope, hang tight, waittill 30 days after the verdict
and then feel free to go do whatyou want.
So I want to have my time back.
(06:54):
I want to have my life back.
I also want to just be able toafford our, our simple life, and
so I, right now, I feel like Ineed to work a second job to do
that, but I don't know if that'sreal or perceived.
So, anyhow, those are the sidequestions that I had.
Um, the next few weeks are goingto feel like I'm blindsiding
everyone out of nowhere, and Iguess I am.
(07:19):
I guess I'm surprising peoplewith news that I'm surprised by
having, and so taking that outof context is not allowed.
Yes, as everyone, I believe,will feel blindsided by this.
I am also blindsided by all ofthis.
So nobody saw this coming froma mile away, other than the
seller who sold the business,and there were thousands of
dollars of losses when theyreported that there were
(07:41):
thousands of dollars of gains.
So that's the only person whoought not be blind, blindsided
by all of this.
Um, yeah, I have to call itbecause my phone is saying my,
my phone is too close to my face.
I need to go and reset someposition of my phone.
Uh, we're just gonna go enjoyour evening.
(08:03):
It's family movie night, sowe're watching a free movie.
We're gonna learn to enjoy lifeon the cheap side, and I just
got five years younger.
Like the future that I wasdreading has never gonna happen.
So we're gonna enjoy this, we'regonna document this and,
regardless of what the outcomeis gonna be, it's easy now to
(08:24):
say like, yep, god is goodbecause it's a verdict that I
wanted.
So that's not a fair thing toassume, but I was hoping that if
I got an unfavorable verdict, Iwould still say God is good
because I do believe that and so, anyhow, um time to zip on home
, time to enjoy life.
We are going to do that and weare going gonna beat it free,
(08:50):
maybe a month from now, so we'lltalk the details later.
Things like refunds, payrolltaxes, franchisor unraveling,
turning over of landlord keys,perishable inventory, like.
There's been a lot of nuanceshere, so story is not over, but
a big checkpoint has beenreached, and reached it has been
(09:11):
.
We're going to document it.
That's where.
That's where we're going.
That's rock and roll.
Woo, all right.
Well, happy Friday, caught upwith the attorney and, long
story short, we're going to beable to file chapter seven.
So the gist of it we are Iwon't go into like our entire
personal finances and businessfinances, but just to keep it
simple.
So I have a very above medianincome and so between the two
(00:23):
types of bankruptcy there'schapter 7 and chapter 13.
The basic difference is chapter7 overnight, if the court says
yes, you are instantly debt free.
Now, if you have some stuffthat are like luxurious or like
bougie, you can't hang on tothem.
So, like I have some sportcards, I have some firearms, I
have some cash, and so some ofthose will be surrendered to the
(00:48):
trustee, they'll get sold andthat'll help pay off some of the
debts.
The alternative is a chapter 13.
That's where you keep all ofyour assets and your liabilities
, but for the next five yearsmaybe three you make a monthly
payment to your creditor account.
That's not enough to cover allthe debt, but it's at make a
monthly payment to your creditoraccount.
That's not enough to cover allthe debt, but it's at least a
good size debt amount.
(01:08):
And after five years you hityour, your limit, whatever, and
now you're done paying off yourdebts.
Uh, when you're like at themedian income or below, you
usually qualify for seven.
If you make a big income, youqualify for 13.
Well, I'm above median, so Iwould normally qualify for 13.
However, the business lossesover 50% of a combination of
(01:33):
business losses, as well as thebusiness debt, is far higher
than my personal debt.
So we're other than, like ourmortgage and a little bit of
student loans.
We're debt free, so we don'thave a whole lot of debt
personally.
Um, and so our business debtaltogether is much higher than
our personal debt altogether.
So because of that, we can't.
(01:55):
The gist of it is weautomatically end up in the
chapter seven option because wecan't qualify for 13.
You end up in seven.
And so now, like we can qualifyfor an overnight debt
forgiveness like it's not goingto be cheap.
Like we pay our attorney's fees, filing fees, we're going to
write a check because we havesome assets that we're not
(02:16):
allowed to keep.
It's like we have a lot of cash.
We can't keep all the cash, wecan just keep a little cash.
So a lot of that lot cash willgo to a trustee, um, like some
memorabilia, some like personalpossessions that are valuable.
Those will get taken andliquidated to pay off the debt
to the trustee.
But it will be debt free.
We won't owe the landlord thesba, the seller finance note,
(02:40):
like it's gone.
It's gonna gone and like thisuncertainty I've had for a month
, it's now certain, like it'sgoing to be over really fast.
And I thought I was going to bealmost 40 by the time this was
behind us and it's going to belike quick.
Our credit score is still goingto take a ding, it's still
going to show bankruptcy,delinquency, whatever.
(03:02):
But it's not the end of theworld.
It's going to be that way.
Whether we do a overnightoption or a five-year option, we
still get dinged either way.
So I am stoked.
I cannot believe it.
Now what we do is the attorneybasically sends us like a super
detailed Word document and Excelsheet.
It's basically confirming yes,this is everything that I own,
(03:24):
yes, this is every debt that Iowe, and it's because it's a
federal thing that you apply forso you can't lie.
If they find out that you lie,like they can take you to jail.
Like it's you don't want to dothat.
You got to tell the truthupfront.
Um, that gets a no brainer.
And so all that to say, uh, wenow like document, a super
(03:44):
detailed document of our assetsand our liabilities.
Uh, we then submit it to thecourts.
A judge says, yes, this looksfine or no, this looks terrible.
And then, um, and then we'redone, so we could file as early
as like a week or two from now,which is lightning fast.
That's gonna be kind of crazy,um, so, yeah, I I don't know
(04:10):
what to say I just arrived and,uh, now we're just hanging tight
.
So so I just arrived for apickup after school, um, but
like it's gonna be over with anddone with.
So, um, yeah, can't really workthe side hustle so much right
now, can't do a whole lot ofbonus things, so we're just
(04:30):
going to hang tight and justwait for the applications.
And so, uh, we still have to dothe, we still have to engage,
like normal business.
So, um, the bank called meagain today that's the second
time this week Like, hey, nathan, how's it going?
Let's catch up on the phoneTalk soon.
They did that.
(04:51):
I haven't called them back yet,but like, we're going to do the
member event this Saturday.
We're going to do a nutritionthing on Sunday, like we're
going to do business as normaland it sounds bad, but there
might just be like a blindsidemoment where it's like all right
(05:12):
, the business is now closed andthen it's up to the landlord
and other folks Forget to keepit going.
Wonderful, thank you,appreciate it, and then it'll be
that.
So I really, really, really wantto give our members a 30-day
heads up.
I don't know if that's going tohappen.
Uh, from what it looks likeit's going to be just like an
(05:33):
overnight decision from thecourts and now I, and then, like
within a blink of an eye, Iwill not owe the bank or the
landlord a dollar, and sothey'll take want to take
possession of those things andstart liquidating them and be
made whole and get a payingperson back into their coffers
and they'll probably shut thebusiness down really fast.
(05:54):
They'll probably liquidateinventory really quickly.
I don't know.
So, yeah, I just need to waitand tell.
What do I do?
So I talked to the lender, thetwo big things we were curious
about do we tell vendors aboutwhat we're doing?
Answer was nope.
There's nothing to announceother than we're filing an
application with the state.
(06:14):
That's just gonna cause concernand panic for everyone.
No, not today.
I asked him about buying mywife a replacement vehicle.
Her car is breaking down.
It smells like burnt rubber.
It is on the edge of its life.
He said nope, nope, hang on.
Let's wait like 30 days tillthe the proceedings are done and
then go buy a vehicle.
Your credit will rebuild.
(06:34):
Cool, I can do that.
Ask about side hustles.
Uh, the photo booth thing.
Should I?
Can I do that?
Can I have a little like pocketcash?
Should I stop that right nowand wait a little while?
He said Nope, hang tight, waittill 30 days after the verdict
and then feel free to go do whatyou want.
So I want to have my time back.
(06:54):
I want to have my life back.
I also want to just be able toafford our, our simple life, and
so I, right now, I feel like Ineed to work a second job to do
that, but I don't know if that'sreal or perceived.
So, anyhow, those are the sidequestions that I had.
Um, the next few weeks are goingto feel like I'm blindsiding
everyone out of nowhere, and Iguess I am.
(07:19):
I guess I'm surprising peoplewith news that I'm surprised by
having, and so taking that outof context is not allowed.
Yes, as everyone, I believe,will feel blindsided by this.
I am also blindsided by all ofthis.
So nobody saw this coming froma mile away, other than the
seller who sold the business,and there were thousands of
dollars of losses when theyreported that there were
(07:41):
thousands of dollars of gains.
So that's the only person whoought not be blind, blindsided
by all of this.
Um, yeah, I have to call itbecause my phone is saying my,
my phone is too close to my face.
I need to go and reset someposition of my phone.
Uh, we're just gonna go enjoyour evening.
(08:03):
It's family movie night, sowe're watching a free movie.
We're gonna learn to enjoy lifeon the cheap side, and I just
got five years younger.
Like the future that I wasdreading has never gonna happen.
So we're gonna enjoy this, we'regonna document this and,
regardless of what the outcomeis gonna be, it's easy now to
(08:24):
say like, yep, god is goodbecause it's a verdict that I
wanted.
So that's not a fair thing toassume, but I was hoping that if
I got an unfavorable verdict, Iwould still say God is good
because I do believe that and so, anyhow, um time to zip on home
, time to enjoy life.
We are going to do that and weare going gonna beat it free,
(08:50):
maybe a month from now, so we'lltalk the details later.
Things like refunds, payrolltaxes, franchisor unraveling,
turning over of landlord keys,perishable inventory, like.
There's been a lot of nuanceshere, so story is not over, but
a big checkpoint has beenreached, and reached it has been
(09:11):
.
We're going to document it.
That's where.
That's where we're going.
That's rock and roll.
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