" Hey everybody! I've stopped paying all of my credit accounts. I now owe many major banks amounts ranging from $5K to $400K. My total credit card and LOC debt is over $1.5 Milliion. Do any of you think I can escape total ruin? Will they sherriff sale my assets?
SCM
IPB
My total biz and personal unsecured credit is now officially over $1.716M. As of 4-13-07, achieved $768,000 in personal credit. Another $948,000 in unsecured Biz credit. DW has over $843,265 in personal and Biz credit. Began cleanup of 6 baddies September 2003. 3 stubborn ones are still on my personal reports. First of over 185 accounts opened Jan. 21, 2004. Lurker since March 2004. Started giving back 4-06. Now have over $2,400,000 combined family personal and biz credit as of January 2007. Started with scores in the mid 500s, now low 700s. Paydex 80, EX biz is 94. My new goal is to get to $2.5 million total combined credit. January 21 was the 3 year anniversary since I started credit rebuilding my credit using help I've gotten from internet credit repair forums, including Creditboards. Thanks all. It wouldn't be possible without your help!"
Actually he may do well writing a book. How to get all the credit in the world and loose it all in less than 4 years. I bet he would make enough to pay off all that debt!!!
SCM was a classic. But he was flawwed. His wife (and SCM also) were abusing debt. They got so used to moving money from here to there and settling with CC and still getting credit that it eventually corrupted them. Along with keeping up appearances they were a train wreck. We all knew it was coming to this.
Further, he was tied up in the wrong assets.
The thing that bothered me the most about him was that while he had access to large amounts of credit, I am not sure he was making sound business moves with this money.
chevette
Member
posted: Nov. 6, 2009 @ 10:12p
I think he was doing what lots of people in business do. They keep holding on to the idea that eventaully they can turn it around and make it profitable and so often it just never happens.
chevette said: I think he was doing what lots of people in business do. They keep holding on to the idea that eventaully they can turn it around and make it profitable and so often it just never happens.
How dare you compare the fine, upstanding businessmen on wall street to the dirty scum defaulting on their home loans and ruining our nation! Not the same thing!
"For the immortal gods are wont to allow those persons whom they wish to punish for their guilt sometimes a greater prosperity and longer impunity, in order that they may suffer the more severely from a reverse of circumstances." -Julius Caesar "Commentaries on the Conquest of Gaul"
Argyll
Senior Member - 1K
posted: Nov. 7, 2009 @ 6:03p
Crazytree said: "For the immortal gods are wont to allow those persons whom they wish to punish for their guilt sometimes a greater prosperity and longer impunity, in order that they may suffer the more severely from a reverse of circumstances." -Julius Caesar "Commentaries on the Conquest of Gaul"
Not familiar with Creditboards.. someone want to summarize what happened over there?
narshe14
Senior Member
posted: Nov. 7, 2009 @ 6:23p
Starsky said: The last time he posted on here was a couple days before Christmas and was begging for help as he was over $1 Million dollars in debt and unable to make payments and his wife was having an affair and leaving him over the debt. I suspect that SCM is deep in Bankruptcy by now as I predicted he would be long ago. Hopefully it's not worse than that and he is still alive. That is a tremendous of amount of pressure and esp during the silly season. Unfortunately by by his own post he got caught up in "trying to keep up with the Jones" and caring what people thought and he was doing as so many do and trying to live a lie off credit. That is always a house of cards that will also always fall down at some point.Ouch, that sucks.
aeiouy
Senior Member - 1K
posted: Nov. 7, 2009 @ 6:41p
And people get mad when they get credit line decreases or denied increases etc etc when they never use their credit.
I have no sympathy for the banks, but people have been no naive as seeing all of this as real substantial risk and exposure for the banks.
It is very unlikely they had income to support that kind of credit, so the banks have nobody but themselves to blame.
oopsz said: Not familiar with Creditboards.. someone want to summarize what happened over there? Supercreditman has posted here as well. He had 1.5 million in cc (I don't remember if this was his limit or the amount he had out on AOR) split among a huge number of cards. He said he was doing this because he was trying to keep his real estate holdings in the downturn. He was in an area that was not well off to begin with, somewhere in Pennsylvania iirc.
Proof that the credit rating system is pretty worthless.
verruckterBaum
Senior Member
posted: Nov. 9, 2009 @ 1:25a
I wish him all the best, I hope he is ok personally. I think anything going on with his family is none of our business, although the fact that it made it to this board probably means he wanted to share it.
That being said, I never really why got why he was such an inspirational hero to so many people on this board. Even pre-recession, pre-real estate collapse, pre-auto collapse the guy was running cash flow negative. I always wondered what was the point of accumulating so much in credit lines if you aren't going to bother coming up with a business plan that makes money. I think he mentioned that many of his properties had been in his business or family for 20-30+ years. How those could not be paid off and making money leads me to believe he was more concerned with his image and accumulation(greed) that running a sustainable business.
I guess I don't see the point, I know business owners who have gotten lines of credit of more than 1.5 million, so that isn't all that special.
I don't think banks are innocent but I do not think he is a victim either. You can make him your hero all you want and as long as he didn't break any laws more power to him. But the fact of the matter is that defaults raise rates and costs of borrowing for all of us who legitimately pay back our debts.
Furthermore I find that auction shilling that he admitted to be disgusting if not illegal.
If you want a FWF hero, look for Dave H. or SIS who actually make money.
Is it my imagination, or did he confess to auction shilling in the last post?probably one of about ten different crimes he's likely committed... it will be eleven with the bankruptcy fraud he is likely to be planning.
I could never understand why that guy got so many pats on the back. I just looked at my own posts from way back in 2006 in the thread linked above:
Oct. 18, 2006 "All of this leaves me wondering - why do the credit card companies only seem to care about household income when they should care more about NET income. This guy is a perfect example, $400k/year in income, and >400k in expenses means he is losing money (he has defaulted on loans in the past and talks about financial hardship over not being able to pay a sewer and trash bill, lost $92k over the last two years). Owning 50 rental properties, a used car lot and dead end computer store all of which combined generate losses doesn't sound like "the good life" to me but apparently the credit card companies will still give you >$1million in credit... settle for pennies on the dollar when you can't repay them, and then issue you more credit after closing your accounts?? NUTS!"
________________________________________________________ Oct 19 2006 "Hate to be the lone pessimist here, but this guy is about to get his head handed to him.
To recap, he lost $92,000 in 2004-2005. He screwed at least 3 creditors over who decided to settle with him for a fraction of what he owed. He has basically worked the system hard using disputes to get >$1M credit, maxed out a lot of his credit lines including short term 0% money which apparently is being used to float his money losing businesses (are they still losing money or are you making money at this point?). Most of us that do the 0% game have the money in liquid assets like CDs, and we have the money to pay them off before they come due or roll them over to other lines. It does not sound to me like this guy is in a position to keep things going. This is going to end badly.
Your name wouldn't happen to be Casey Serin would it?"
Crazytree said: do the CC companies not 1099 you on the forgiven debt?
They do, but there's an exception to recognizing income on discharge of indebtedness if you're insolvent (to the amount of the insolvency) or bankrupt. It's in the §61 regs, I think.
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