Ever know anyone who went totally broke

In the early to mid 1980s I knew of two people/ family's who went totally and utterly broke both because they worked for family bossiness that at one time were very successful and employed a lot of people but by the 1980s they went bankrupt.

One ended up with their house being repossessed. I don't know what happened to the other person but I know the whole thing was a huge trauma as it wasn't like today there was a lot of gossip about them.

Permabear

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Permabear

Permabear wrote: »

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But apparently its easier to reinvent yourself in the US?

Permabear

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seachto7

I can't understand how developers who went broke, still drive around in Mercs. There's no cutting your cloth to measure.

One in Limerick, when they went bust, managed to build a huge gaff at the same time. Don't get it.

fepper

Sure you don't have to declare bankruptcy if your business goes broke if no creditors, could be bad business decisions,bad luck,etc

seamus

Uncle of mine in the 1980s was one of those people who had connections to import a big new expensive gadget (I forget what it was) that was popular in the US and Australia. He gave it a go, but obviously didn't realise that the market for expensive luxury gadgets in 1980s Ireland was incredibly small and promptly went completely bust, lost the house and everything, ended up living in a rented flat that my aunt got cheap through someone at work.

His brother had become a millionaire selling the same thing into Australia, so he paid for my aunt and uncle to emigrate and join his business.

Unfortunately he had hit the bottle pretty hard when he lost everything and couldn't get back out again, even with a fresh start in Aus. It didn't help that my aunt is batsh1t.
His brother gave them some support to stop him from absolutely hitting rock bottom, but they were penniless virtually the whole time, were never able to get on their feet. He took his own life 2/3 years back and she spends her time convincing people to give her charity.

theteal

seachto7 wrote: »

I can't understand how developers who went broke, still drive around in Mercs. There's no cutting your cloth to measure.

One in Limerick, when they went bust, managed to build a huge gaff at the same time. Don't get it.

weren't they all getting something like €200k per year from NAMA?

Toots

When I worked in a bank I knew several customers who had their own businesses who went totally to the wall over the years. A lot of it was during the recession, which was really horrible to see. There was one gut who had what we thought was a thriving business, but it turned out he'd never paid a cent of tax since the day he started working for himself. Revenue got wind and all of a sudden this dude had attachment orders on all his accounts and couldn't access any money.

Permabear

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Shurimgreat

seachto7 wrote: »

I can't understand how developers who went broke, still drive around in Mercs. There's no cutting your cloth to measure.

One in Limerick, when they went bust, managed to build a huge gaff at the same time. Don't get it.

Probably given huge loans by the bank during the boom. Withdrew a lot of it in cash before they went broke or were made bankrupt and used it to fund day to day spending and building of new house.

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hinault

What does going broke mean?

I know several people who's businesses have gone broke. Their business incurred debts which their business could not afford to repay.

They personally might have had sufficient funds to repay what their business owed to other people, but the law says that it is their business, rather than them personally, who are liable for those debts.

I know very few people who've been made personally bankrupt who are living in large houses/driving flash cars.

Known a few who got stuck in Vietnam and lost everything. Pretty easy to do when you're foolish, love beer, and can find ketamine.

About six years ago, I was in debt to a friend. But that's a different type of broke because I had earning potential.

hinault

hinault wrote: »

What does going broke mean?

I know several people who's businesses have gone broke. Their business incurred debts which their business could not afford to repay.

They personally might have had sufficient funds to repay what their business owed to other people, but the law says that it is their business, rather than them personally, who are liable for those debts.

I know very few people who've been made personally bankrupt who are living in large houses/driving flash cars.

The kind of going broke I am talking about are family business that at one time were very successful often had a lot of family working in them employed a lot of people then when the business went bankrupt they family members didn't have the education or where with all to do anything else. Ireland in the 1980s was very small too it was a lot to do with status as well. In today business environment individuals are a lot more savvy about protecting themselves.

KERSPLAT!

I only eat out 3 times a week and go on 4 sun holidays a year since the recession kicked off. Does that count as broke?

KERSPLAT!

KERSPLAT! wrote: »

I only eat out 3 times a week and go on 4 sun holidays a year since the recession kicked off. Does that count as broke?

Well in comparison to loosing your house no.

Akrasia

Permabear wrote: »

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There was a lot of sheltering assets from creditors in ways that were probably illegal but there was no appetite to pursue them

I know of one particular case where wealthy owner of a load of shops and car dealerships went bankrupt. Lets call him Joe Bloggs motors. All of his staff lost their jobs and had unpaid wages, as well as a long list of creditors losing tens of thousands in unpaid invoices

less than a year later, those same shops and dealerships were re-opened but instead of being called 'Joe Bloggs Motors' they were called 'Bloggs Moters'

Absolutely no shame. And these same people still walk around with a swagger as if they're gods gift to business (despite having only inherited the businesses from their father who built it up from the ground)

Akrasia

KERSPLAT! wrote: »

I only eat out 3 times a week and go on 4 sun holidays a year since the recession kicked off. Does that count as broke?

A few years ago I was working in a full time job for a multinational company but not earning enough money to support my wife and young family.

She couldn't go to work because we had very young kids. Things are bad when you're including tins of beans in your press as an important part of your net worth.

Family Income Supplement saved us, but there are a lot of 'professional' jobs that don't pay anywhere near enough money to support a very modest lifestyle unless there are two wages coming in.

myshirt

Permabear wrote: »

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Limited Liability doesn't mean sh't when Personal Guarantees were flavour of the month in Irish finance.

myshirt

I was down to my last 20 grand at one point, really riding close to the wind. Got out unscathed though.

Lu Tze

myshirt wrote: »

I was down to my last 20 grand at one point, really riding close to the wind. Got out unscathed though.

Thought you would have an "I lost everything but the shirt on my back" story

draiochtanois

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duffysfarm

a good fried of my fathers inherited a good sized farm (200 acres) which was fully stocked and living at home with hiw widowed mother. this was about 30 years ago. I always remember him hanging round my parents house having the craic etc when i was a kid.
he was an only boy and spoilt i suppose, never used to working. over the years he has sold over 100 acres, 5 sites for houses and married and built a house for himself. the wife has since left and the house is up for sale and any remaining land rented. he is working for some one else doing the same job that he should be doing for himself i.e. farming. An ufortunate case as he has lost his life and his family but he should be one of the richest men around if he had kept things under control. he just lived the good life for too long and never looked after what he had when he had it. nobody can figure out where the money went and while i dont feel particularily sorry for him as he is not the nicest person around I feel sorry for him i do feel sorry for his family.
I have seen other people lose everything but similar to another post, a lot of them hit the bottle soon after and things only go down hill further.

_Whimsical_

The guy who laid a patio in my neighbours was telling me he won the lottery years ago, developed a gambling addiction and lost every bit and went bankrupt. I Googled him as it seemed pretty unbelievable, turned out it's true.
He seemed ok about it all though, all part of lifes great tapestry. I wouldn't wish it on anyone but I could certainly think of worse things.

draiochtanois

draiochtanois wrote: »

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It funny, but as I have been reading Grange Abbey I started looking up Irish property developers some of it is hilarious especially the Manhon tribunal.

endacl

I went broke regularly in the 80s. It was practically a daily occurrence. Granted, I was a teenager at the time, but it still counts!

Johnnio13

Growing up, our family home was mortaged twice against business loans for a business that didn't have the space to grow into what it could have been. Had my parents v stressed for most of the mid-late 80's. Eventually bought out by landowner which cleared the loans. But it was extremely crazy time.

Delphinium

Knew a man who drank the value of two large farms. The fact that he was into breeding horses and greyhounds didn't help. His two sons took over the now mortgaged farms and became very successful, non drinking farmers. But they treated him so well and looked after him till he died.

_Whimsical_

Developers and business owners got away with murder.
One week known furniture sales business in Galway went on a Friday leaving lots of people having paid deposits and even having paid in full for small items of furniture yet to be delivered.
On the Monday the same people opened a new premises selling furniture 10 mins from their original shop.

draiochtanois

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myshirt

The Man who drank the Farm, I can see it now, a best selling sequel to An Beal Bocht.

messy tessy

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One of the best buddies was a very good plasterer, employed a few lads pre & during boom. Was out of work for years during recession. Was totally broke I suppose. Was on SW etc.

ScumLord

seachto7 wrote: »

I can't understand how developers who went broke, still drive around in Mercs. There's no cutting your cloth to measure.

One in Limerick, when they went bust, managed to build a huge gaff at the same time. Don't get it.

If you look online at these developers they'll often have a trail of broken companies in their wake, they have no problem dropping a company like a hot potato when it suits them leaving everybody else in the lurch.

People in family business often have a sense of loyalty and pride in the business and end up carrying huge debts as guarantors beyond anything a normal person could pay to try and keep the business afloat.

Subcomandante Marcos

Friend's auld lad owned a few businesses, divorce and the economic crash hit him at the same time and he fell apart.

Went from big house in gated community and nice cars, holiday home, the lot, to living in sheltered accom in the space of a few years.

FireFoxBoy

My parents went broke during the recession. They took out a mortgage they couldn't pay back. Their repayments were 1500 a month which isn't much if you're working but neither of them were at the time.
I don't know how they were paying for it but they lost it in the end.

Cervantes2

Really broke or Sean Fitzpatrick broke?

FireFoxBoy

Really broke

myshirt

Wasn't there a Donegal guy on here before who was part a family of ten but they only had one set of shoe laces between them, and they didn't even own a shoe.

Now that's what you call broke. Really humbled me. We have all fallen on hard times, but Christ that's bad.

myshirt

myshirt wrote: »

Wasn't there a Donegal guy on here before who was part a family of ten but they only had one set of shoe laces between them, and they didn't even own a shoe.

Now that's what you call broke. Really humbled me. We have all fallen on hard times, but Christ that's bad.

A yes but in a block buster book he rises from humble plaster to become one of the UK biggest property developers.

Sam Kade

hinault wrote: »

What does going broke mean?

It means that you haven't a pot to piss in or a window to throw it out.

Sam Kade

duffysfarm wrote: »

a good fried of my fathers inherited a good sized farm (200 acres) which was fully stocked and living at home with hiw widowed mother. this was about 30 years ago. I always remember him hanging round my parents house having the craic etc when i was a kid.
he was an only boy and spoilt i suppose, never used to working. over the years he has sold over 100 acres, 5 sites for houses and married and built a house for himself. the wife has since left and the house is up for sale and any remaining land rented. he is working for some one else doing the same job that he should be doing for himself i.e. farming. An ufortunate case as he has lost his life and his family but he should be one of the richest men around if he had kept things under control. he just lived the good life for too long and never looked after what he had when he had it. nobody can figure out where the money went and while i dont feel particularily sorry for him as he is not the nicest person around I feel sorry for him i do feel sorry for his family.
I have seen other people lose everything but similar to another post, a lot of them hit the bottle soon after and things only go down hill further.

So owning and farming 200 acres will make you rich in your opinion.

mikeybrennan

A lot of impulsive types seem to go broke .

mikeybrennan

Subcomandante Marcos wrote: »

Friend's auld lad owned a few businesses, divorce and the economic crash hit him at the same time and he fell apart.

Went from big house in gated community and nice cars, holiday home, the lot, to living in sheltered accom in the space of a few years.

Be worse if it was unsheltered

mikeybrennan

Sam Kade wrote: »

So owning and farming 200 acres will make you rich in your opinion.

Farmers don't actually make money.

They just don't spend any

Burial.

I know quite a lot of poker players and with that sports bettors so I know quite a few who lost every cent they had plus owing a lot lot more to friends/other players. One memorable occasion was a guy losing 6 figures in the space of a week and wiping out his entire bank account. Money is passed around in the poker community ridiculously easy. If I needed 10k all I'd have to do is message the group chat and I'd have it pretty much there and then.

Permabear

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dreamers75

My bosses went broke in the 80s real estate market and made a last gasp play for the market I work in and 30 years later are millionaires with numerous interests.

They are nice guys and worth about 100m between them but at end of the 80s had about 50p between them.

I have been totally broke on numerous occasions. Not broke now but not far off.

hinault

Sam Kade wrote: »

It means that you haven't a pot to piss in or a window to throw it out.

Does it mean just that?

I think there are different types of "being broke".

You've the ones who own nothing, but who owe nothing, and live week to week. They're broke.

You've others who possess a lot, but what they possess has money still outstanding on what they possess. They're broke.

Then you have those who's business owes money to people, but their business hasn't sufficient money to repay what the business owes. They're broke.

LirW

Actually a good story I got there: Back in Austria I know this guy who is a self declared Marihuana activist, the kind of activist who uses medical as an excuse to be high 24/7. He actually smoked his brain away, I'm sure about that. Compared to that this guy is extremely naive and posts everything about his life on FB. He married young and got divorced, never really had a job, do financially never really in a good position.
Anyway, a few years ago he decided (even though everyone told him to leave it) to open a head shop in a rural town which is an inofficial drinker capital and very conservative. He had to close after 6 months and his GF kicked him put. Even though everything was f all, he had another great idea of hosting a Raggae festival in the middle of nowhere and he invited some famous artists in the scene.
His partner f'd him big time, disappeared with the whole money on day 1 of the festival and called the cops on the place so they had to shut down at 10pm each evenimg for the whole weekend. Nobody got paid and he was taken to court.
He ended up homeless for a while, but got a place in the end and a job that he lost after 2 months because of his open Pro cannabis agenda and a lot of "f the system acab" posts that were public on FB. He was working with kids at that point.

After a few dramas, one of them losing his driving license after being caught with a high amount of THC in his blood in Bavaria, he enrolled in university to get state benefits (you get them, a few hundred a month but you have to reach certain amount of points, which in fairness is really easy). During that time he was going full activist "I need my medicine!!!11". He failed every exam and got a letter a few weeks back that he need to repay the full amount of the benefit he got which is more than 8k.

He still doesn't work and blames the state for his failure in life.