My bankrupt friend is a financial train wreck [Paging IMNobody and other money peeps]

[jackal]

Hey guys, seen quite a few really productive threads in here in the past about all sorts of things to do with finances. Hopefully some of you will have some advice which I can in turn use to help my somewhat dunce of a friend.


Let me start by saying that the guy in question is a pretty outstanding guy, and while lacking a few desirable qualities (re money management, motivation), is somebody I'd consider a good person. Too bad being a good person doesn't make you money. He's a retard when in comes to money. Instead of tossing you guys a sob story, I typed out the hard facts that I know, I'm certain some details are missing, so if you need additional info, I'll do my best to track it down.

The Timeline:

Friend lives in Ontario Canada. Graduates highschool, takes out about 10 thousand dollars in loans to fund his MCSE schooling.

Completes his MCSE in the late ninties, and about that time the tech market is crashing, he gets pink-slipped, and never uses his MCSE cert again. Starts working dead end jobs.

Things come to a head, his mother falls ill on the other side of the country, expenses peak, and hes forced to declare bankruptcy. He racks up 1200 dollars in lawyers fees.

Fills his jeep with everything he owns, and starts a cross country trip to Alberta. His jeep blows up in Manitoba. With only enough money for gas, he flags down a truck driver using is CB radio, and hitches a ride to Calgary, abandoning a 5 thousand dollar jeep and 2 thousand dollars in electronics by the side of the road.

This was two years ago. Fast forward to today, hes living with his severely disabled mom in a run down apartment on the bad side of town. He works at an engineering company making about 1800 a month. The company is small, about 20 employees. Its one of those going nowhere companies with a bad owner, doesn't go out of business, but never grows. He gets basic medical coverage, no stock options, no company contributions of any kind.

Hes sick and tired of this, and I'm sick and tired of hearing about it.


The Facts:

• Bankrupt
• Owes the bank 10 grand (I asked him about interest or late fees, and he has no idea, stating he could very well owe more than this amount)
• Owes lawyers 1200 (I asked him about interest or late fees, and he has no idea, stating he could very well owe more than this amount)
• Smokes about 240 dollars a month in cigs
• Has between 5-6k in sellable airsoft goods (I took him to an airsoft game, and it got out of control from there)
• Does not have, and is not contributing to any sorts of bonds, an RRSP, or anything like that
• Is persistent in not selling his airsoft gear to pay off his debts, citing that he'll "lose too much money"
• Owns a really POS car, probably worth about 500 bucks
• Owns a decent computer, and a really nice dual opteron server, which hes lended to his company to use for free because hes a tool
• hes 32
• Jesus christ
• His resume is complete shit. It has PICTURES on it. Enough said.
• He doesn't even know the names of the major companies in this city that are looking for people, both skilled an unskilled, because hes never bothered to look because he states hes "too bummed"

Asides from kicking the shit out of him, how do I help him get himself out of this financial rut. Hes dependent on work to pay the bills, like everyone else. Being that hes a mature student, he can get into post secondary easily, but hes bankrupt still.

[goatrape]

i wouldn't get involved mate. he'll only blame you when it goes even more tits up.

[mathlete]

Bankruptcy didn't wipe out the 10,000 debt?

You can't fix him though unless he wants to improve himself.

[JayDubs]

I doubt his situation will improve, if he is the kind of person to spend 5-6k on Airsoft when his finances are in the dumps and his credits shot. Too bummed to find a better job? Wahhh. Nothing will go his way until he decides he's sick of being broke and sick of having no room to climb the ladder at work.

[vіnnіe]

1800$ a month is a lot of money, he's just an idiot

[makaveli]

damn i feel bad for him

you will find better help here: http://forums.moneysavingexpert.com/ - they have a forum called "Debt-Free Wannabe" (http://forums.moneysavingexpert.com/...play.html?f=76)

[scrubbs]

so you're saying he has 12 000 in debt and this is dire problems? Honestly, that doesnt really sound like a heck of a lot of debt. I know people graduating from university with 40k in student loans, and 20k in CC debt.

I assume he's got something else that you don't know about, because that much debt doesnt sound like it should be detrimental.

what can you help him with? well, if his resume is that bad, then help him with that. shouldnt take much time, and at least it will help him get a better job. Alberta(calgary especially) is booming everywhere. If he any good at what he is doing, then it shouldnt be that hard for him to go to something bigger.

btw, how close to winnipeg did he leave his jeep with all the schwag in it? and where?

[illig]

honestly, his cigarette expenses alone would've covered the lawyer fees in 5 months... and his debt could've been easily paid off by now had he not bothered with airsoft (i mean, who the hell gets into an expensive hobby when they're bankrupt?!?)

unless he decides to help himself, there's nothing you can do.

and his bankruptcy, and existing unpaid debt (which is probably in collection) are definitely on his credit record, making him a risky hire for any respectable company, which is probably why he's stuck at a dead end job

[9mmCensor]

Originally Posted by vіnnіe

1800$ a month is a lot of money, he's just an idiot

Your an idiot for saying that. $1800 dollars is $1800, the purchasing power it represents is relative. Considering its Canadian dollars, it takes a hit right there, then you figure in Cost of Living, which I don't know what it is, and it could either be alot of purchasing power, or a little...

[brouski]

It's only $21K a year, before taxes probably. If he's supporting a disabled mother, it's even worse.

That being said, this problem is obviously one of his own making. It won't get better until he starts making more money and living like a poor person. Selling his Airsoft shit, his nice computer, anything he doesn't need to live and get to work. Second job, the whole shebang.

[st1650]

He's in AB FFS.

He could get a 50$/hr job in no time working on oil fields.

[Zeagle]

Sounds like a bleak future. People need to learn personal resposibility and common sense at and early age before they have the chance to fuck up their lives -- until he realizes that he lacks this he won't be able to help himself.

Abandoning a Jeep? Abandoning the equipment in it? Bloody hell, thats just silly. He could have paid to put it in storage until he figured out how to transport it.

[zoopnazi]

Originally Posted by st1650

He's in AB FFS.

He could get a 50$/hr job in no time working on oil fields.

where'd you hear that?

[zoopnazi]

Originally Posted by 9mmCensor

Your an idiot for saying that. $1800 dollars is $1800, the purchasing power it represents is relative. Considering its Canadian dollars, it takes a hit right there, then you figure in Cost of Living, which I don't know what it is, and it could either be alot of purchasing power, or a little...

The cost of living in Calgary is outrageous, but if a guy makes a few sacrifices it's very easy to live on $1800 a month in that city. I went to school there and earned about $1200 a month and still got by.

[zoopnazi]

I will add too tho that he should have no problem getting a job in the oil and gas industry, but he should a) expect to work his bag off (12 hour days 2 weeks on 2 weeks off is typical) and b) not expect to make $50/h like the dreamer above said. Skilled labour/professionals make that much, after going to school or getting years of experience or a combination of the two.

In Alberta a leasehand on a drilling rig makes $21.50 an hour IIRC. More than enough, especially when you consider the 12 hour days, 4 of which are at 1.5 X pay.

That said, the rigs are relatively slow right now, and he would REALLY have to learn how to budget for next year when things slow down again, because there is never much money to be had in the springtime