One of the things I get asked quite often is “Why do people go bankrupt? What’s the common causes?” And I thought it fits into 3 categories.
One of the things that I see quite often where businesses and people have got into financial difficulty, is the fact that they tend to, whether you want to use the word ‘procrastinate’ or extend it out, they don’t really have an answer, so they don’t do anything.
Over the years, I have dealt with a large number of trustees, and whether you go for a private trustee or a government trustee, really depends on your own personal situation. The underlying thing I’ve found with trustees, is to find one that you can talk to and you can deal with. If you leave it up to your creditors to bankrupt you, and they put in their own trustee, they are going to be very aggressive.
Earlier this week I was driving to work, and one of the topics that was on the radio, the Neil Mitchell show on 3AW was Welfare – the amount of money that’s being spent on welfare, a year. And it works out to be around about 5 million per person, per year.
I was recently talking to a friend of mine about forgiveness, and what is forgiveness and how do you forgive someone. And people sort of continue to turn around and say, “Oh, I need to forgive them,” or “I need to move on; get over.” But how do you do it?
Things are never as bad as they seem and things are never as good as they seem. And it reminds me of a particular couple that I had, that they were living in a rented house. And they were renovating the house to stay on the street, and they wanted to keep the house. So 2 years down the road, they’re panicking, “Oh, we haven’t got the money! We’re going to lose the whole lot,” and it all goes on and on and on. And it’s doom and gloom.n
One of the things I have realized over the time, when we’re negotiating with creditors and in actual fact when we are negotiating or dealing with things in life, is that there are no winners in an argument, whether it be our partners, whether it be our children, our parents. As soon as you get into an argument what we’re trying to do is to try and prove that the other person is wrong and that we are right. Now, from our point of view we’ll be right but if we accept the other person’s point of view from theirs is right, then we get a lot further.
Sometime ago, I was dealing with a fellow in the motor industry, and he had an agreement with quite a large motor repairer, to do their vehicles. He was going through a tough time, most probably wasn’t as strong mentally as he could be at that time. He’d had been 12 or 18 months of being harassed and worrying and feeling like he was going to lose everything.
When you’re depressed or when you’re focused on something and it seems to me that when I sit with people, that are going through this financial hassle in business or whatever, all they start to do is focus on themselves.
“JAKE ASKS: I have read your book and love it. Using your formula I have already paid off a long-term debt. Unfortunately, my partner and I have separate finances (her choice) and I recently found out that, in the time I paid off my debt, she racked up another for twice as much. Frustrating! We both earn OK incomes (combined $200,000), but are still renting at age 37. As we have three kids, I really want to get into our own home in the next four years … how do I convince her?” Read More