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Old 08-20-2011, 02:01 AM
georgeisbroke georgeisbroke is offline
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Location: Michigan
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Angry Omg Lost It All And More

My situation is extreme, I am in my mid 40s and will probably never have another dime in my life. I had a real estate investment company in my name and it went under. By the time I said forget it, and stopped paying on Everything... on average my houses where worth about -25k in mortgage to asset value.

Plus business debit, and my person debit. I let about 50 single houses (and lost my own in the process) foreclose and now have serious IRS, State, City, and Business tax debit that comes with HUGE monthly penalties.

I have not worked in 2 yrs cause I have so many judgements on me that there will be no way for me to get ahead... Bottom Line, I'm lost without a clue of how to proceed so I've chosen to do nothing. I owe an estimated 4million that is raising at rate per month in what I could make in a year.

I worked hard building this business 60-90 hours per week, lost time with family and friends. I was 20 years younger and had great credit then. Now I'm older, owe many more times what I could make in my life, don't have the energy or drive that I had in those days. I can't begin to afford an attorney or tax adivsor due the cost of service cause of the complexity of my situation. I haven't filed my taxes for 3 years... cause they are so complex, I don't have a clue how to do them myself. Anyone have about 10 feet of rope?
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Old 08-20-2011, 09:28 AM
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DavidBibby DavidBibby is offline
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Location: Palm Bay, FL
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Default Re: Omg Lost It All And More


Your situation sounds a lot like how Dave Ramsey himself went under in his real estate ventures...

I don't know if you read his books or if you love the guy or hate the guy... but if you haven't read them yet, that is my recommendation.

Most people in your situation would file for bankruptcy. I'm not sure if that's in your future... but I cannot give you the professional advice you're looking for either.

Hopefully some of our other members can chime in here...
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Old 08-20-2011, 04:36 PM
georgeisbroke georgeisbroke is offline
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Join Date: Aug 2011
Location: Michigan
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Default Re: Omg Lost It All And More

I have not read any of his books, but i will check it out. Doing the B-R won't do much for me, cause most of what I owe is for tax issues. I know the IRS has an Offer and Compromize program (settlement), however Michigan State and Michigan Single Business Tax do not, nor does the City of Detroit.
So that still leaves me with about 2mil.

The way the IRS has penalties and interest is a joke. We as everyday people are lucky to get 1% interest on our money. Per year the IRS rate is equal to 50%... what's up with that???

So a person owing 1mil, in 12 months owes 1.5mil, the next year becomes 2.25, 3.37, 5.06mil.... just in 4 years... yr 5 is 7.5million. And we can't get 1%, our gov is really got me ticked off, and so should everyone else be.

Then this stuff ends up in the news about a person owing 7.5 mil... and everyone thinks the individual is an underground gangster criminal cause they don't have a clue how the penalty system works... grrrrrrr.
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Old 08-24-2011, 12:26 PM
kate032 kate032 is offline
Join Date: Jul 2011
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Default Re: Omg Lost It All And More

I don't have any financial advice to share, but your last sentence concerned me a lot. Your financial situation isn't great but somewhere, somehow it will eventually get straightened out.
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Old 08-24-2011, 02:35 PM
littleroc littleroc is offline
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Join Date: Mar 2011
Location: Minnesota
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Default Re: Omg Lost It All And More

I understand how this situation is very scary, but I don't think hiding from it will help. It is a Federal crime not to pay your taxes, just because you heavily leveraged yourself in real estate and it went bad doesn't mean you can run from your problems. Just like Dave said above I would look into Dave Ramsey's material. He had very similar problems. I would go face on into these problems and start working out whatever deals you can and then start working on something entrepenuereal that doesn't require debt to achieve, obviously as you've seen that going into debt to reach a goal can come crashing in on you. Good luck! Get to work.
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Old 09-22-2011, 11:15 AM
SolutionMan SolutionMan is offline
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Join Date: Sep 2011
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Default Re: Omg Lost It All And More


And actually EVERYONE, quite simply, there IS No solution to this problem. Especially the
Taxes! f the government(IRS) were to simply look at what George owes, and THEN his
' Ability to Earn' it would be plain as mud that they would NEVER EVER get anywhere near
what their charging him!! And with Interest compounding all the time, there is no way that
working would help him....the ONLY thing the IRS could do is to STOP and Freeze his
Debt where it is now, and only garnish ~15-20% of his income, that way he might have incentive
to actually work again, and they would get some money (better than nothing) and
George would have a decent Quality of life again...everybody Wins...
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Old 09-30-2011, 11:03 PM
tlscott1 tlscott1 is offline
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Join Date: Sep 2011
Posts: 9
Default Re: Omg Lost It All And More

You are what you think! If you think you will never get out of this situation, then you wont! However, i have to believe you will get out of this situation. You had a successful business and I think you can do it again. Yea, You may owe a lot of money, but I am POSITIVE you can do it again.

Look into 48days.com listen to Ziglar, and read Ramsey. Stay positive!

Last edited by DavidBibby; 10-01-2011 at 08:26 AM.
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