Now Ye're Talking - to a Bankrupt Student

Boards.ie: Niamh · 27-06-2018 12:12pm #1

Our next guest was self-employed running his own business for a time but was declared bankrupt earlier this year.

He has had to restart his career and is now in full time education in his mid 40s.

He is here to answer any questions about his bankruptcy or returning to education as a mature student.

JaMarcus · 27-06-2018 12:16pm

@Boards: Could we not get a bit more detail in the opening posts of these, even a paragraph?

@AMA: In the absence of the above:

(i) What type of business did you own?
(ii) How many employees? Did you have to let many of these go? If so, how did you handle it?
(iii) Was business ever good? If so, what contributed to the downfall? How much of it do you feel was within your control vs what was out of your control?
(iv) What would you do differently if you could?

Gloomtastic! · 27-06-2018 12:40pm

There but for the grace of God! Who'd be a student these days?

Hello OP,

I've been involved in a business that was really struggling at one stage - big guys with baseball bats sent to try and get money out of us.

Why did you go into the business you were in?
What was your two biggest mistakes in business?
What was your lowest point?
Was it your decision to close or was it the banks?
What have you learnt from your experience?
Are you studying something similar to what you were involved in or is it completely different field? Why did you choose that field?

Good luck to you and hope this AMA is of benefit to you.

I'm a bankrupt student, AMA · 27-06-2018 12:52pm

JaMarcus wrote: »

@Boards: Could we not get a bit more detail in the opening posts of these, even a paragraph?

@AMA: In the absence of the above:

(i) What type of business did you own?
(ii) How many employees? Did you have to let many of these go? If so, how did you handle it?
(iii) Was business ever good? If so, what contributed to the downfall? How much of it do you feel was within your control vs what was out of your control?
(iv) What would you do differently if you could?

Hi everyone.
I will try to answer all questions but would prefer to be discreet about who I am.

I owned a small convenience store in the Dublin area. I employed upto 14 people at the peak but when the recession hit, business just stopped. Most of what happened was out of my control. I don't think there was much I could have about it really.

I'm a bankrupt student, AMA · 27-06-2018 12:59pm

Gloomtastic! wrote: »

There but for the grace of God! Who'd be a student these days?

Hello OP,

I've been involved in a business that was really struggling at one stage - big guys with baseball bats sent to try and get money out of us.

Why did you go into the business you were in?
What was your two biggest mistakes in business?
What was your lowest point?
Was it your decision to close or was it the banks?
What have you learnt from your experience?
Are you studying something similar to what you were involved in or is it completely different field? Why did you choose that field?

Good luck to you and hope this AMA is of benefit to you.

The business I bought was a management buyout. I had worked in the place for about 10 years.

My biggest mistakes was not being firm enough and allowing people to make demands when a big fat NO should have been given, and the second, doing things by the book.

My lowest point was when I had to let some very good staff go, but I had no choice.

The main thing I learnt was don't work for yourself, there is a lot to be said for finishing work and walking away.

I am studying something completely different as a new start.

Ubbquittious · 27-06-2018 1:00pm

I'm a bankrupt student, AMA wrote: »

My biggest mistakes was not being firm enough and allowing people to make demands when a big fat NO should have been given, and the second, doing things by the book.

What kind of demands were they making?

I'm a bankrupt student, AMA · 27-06-2018 1:03pm

Not really.
I was a cash business with very little credit

Panthro · 27-06-2018 1:15pm

Do u.... Swing in your spare time at all?
(just kidding I'm referring to a previous AMA thread!)

I'm a bankrupt student, AMA · 27-06-2018 1:17pm

Ubbquittious wrote: »

What kind of demands were they making?

Good customers who, at weekends got valuable supplies from me, but required deliveries all week which cost more to do than it generated.

People demanding levels of service provided by multinationals, who did not understand I was a small local operator. Stuff like that

I'm a bankrupt student, AMA · 27-06-2018 1:17pm

Panthro wrote: »

Do u.... Swing in your spare time at all?
(just kidding I'm referring to a previous AMA thread!)

Think the wife may have an issue with that!

begbysback · 27-06-2018 1:21pm

Graduated mature student here - do you find rejuvenated hope from returning to education?

connemara man · 27-06-2018 1:25pm

When you say doing things by the book what do you mean?

Ubbquittious · 27-06-2018 1:35pm

I'm a bankrupt student, AMA wrote: »

Good customers who, at weekends got valuable supplies from me, but required deliveries all week which cost more to do than it generated.

People demanding levels of service provided by multinationals, who did not understand I was a small local operator. Stuff like that

Did you ever have problems getting paid or was it strictly up-front payment?

How did you end up doing it for less than cost price, did you not ask enough or did they haggle down the price on you?

miamee · 27-06-2018 2:17pm

What does becoming bankrupt mean - is it something you decide or the bank tells you you are now bankrupt? I have a vague idea of how it works but some info from someone who has gone through it would be interesting.

You mentioned that things started to go downhill when the recession hit but you were only declared bankrupt this year - that was a long stretch in betweem, was it a relief when it finally happened and you could walk away from the business?

minikin · 27-06-2018 2:24pm

How have you funded your return to education?
Get any grants / supports from the state?
My understanding (as a currently self employed person) is that the system automatically says no.

I'm a bankrupt student, AMA · 27-06-2018 3:15pm

begbysback wrote: »

Graduated mature student here - do you find rejuvenated hope from returning to education?

Absolutely. I now have something to work towards - my future!

facehugger99 · 27-06-2018 3:22pm

How similar would going to college in your 40's be to the Will Ferrell movie Old School?

I'm a bankrupt student, AMA · 27-06-2018 3:33pm

connemara man wrote: »

When you say doing things by the book what do you mean?

I made all my payments ontime. I didn't really use credit, I was very straight took no liberties, even while people around me did.

miamee wrote: »

What does becoming bankrupt mean - is it something you decide or the bank tells you you are now bankrupt? I have a vague idea of how it works but some info from someone who has gone through it would be interesting.

You mentioned that things started to go downhill when the recession hit but you were only declared bankrupt this year - that was a long stretch in betweem, was it a relief when it finally happened and you could walk away from the business?

I found myself in a position where my business was gone and my personal debts were unserviceable. I had a glut of advisors helping me, but the final decision came down to me. I eventually went to a debt charity in Dublin who arranged everything for me. I bit the bullet and went to them. It was a cut and dried situation, so I was declared bankrupt in the High Court in January of this year.

minikin wrote: »

How have you funded your return to education?
Get any grants / supports from the state?
My understanding (as a currently self employed person) is that the system automatically says no.

You are correct. The general understanding is selfemployed people have no help, but that is not true.

Due to other circumstances (we had a perfect storm really). my wife was on social welfare and I was on her claim. We were means tested and she got a small payment. So when the proverbial hit the fan, I went into the social welfare office and confirmed, via a letter from my accountant, that my business was gone and I had lost everything.

They upped my wifes payment to full social welfare and that was it. After about a year, I was called for social welfare interview and explained everything that happened to us. The lady sat there in disbelief. I was advised to open my own claim as it could open doors to me and she suggested I go onto a special course for people who had been through the mill. I declined the course.

After a few months, my wife dragged me into an open night for college and it pricked my interest. I contacted mature student admissions and got interviewed over the phone. I was offered a place on life experience and maturity merits!

SUSI backed me by paying my fees, and Social Welfare moved me to Back to Education Allowance. I dont hear from them now. Just a single letter to be stamped by the college to confirm I was attending !

I'm a bankrupt student, AMA · 27-06-2018 3:37pm

facehugger99 wrote: »

How similar would going to college in your 40's be to the Will Ferrell movie Old School?

Never seen it. I worked 100 hours a weeks for years to keep going. Televison? What's that?

tedpan · 27-06-2018 4:49pm

miamee wrote: »

What does becoming bankrupt mean - is it something you decide or the bank tells you you are now bankrupt? I have a vague idea of how it works but some info from someone who has gone through it would be interesting.

This is how it's done..

https://www.youtube.com/watch?v=HuGIgf-ICHM

On a more serious note, my Dad went bankrupt in the 90s in the UK, he lost everything.

It was also the reason I moved to Ireland, so I take it as a blessing.

I'm a bankrupt student, AMA · 27-06-2018 5:02pm

tedpan wrote: »

This is how it's done..

https://www.youtube.com/watch?v=HuGIgf-ICHM

On a more serious note, my Dad went bankrupt in the 90s in the UK, he lost everything.

It was also the reason I moved to Ireland, so I take it as a blessing.

I paid everyone as much as I could but had to stop. If I paid one creditor over another, it could be viewed as illegal. I had a vulture fund pressing me for 1.2 million, they probably bought it for 20c in the euro. When they appointed a receiver, I gave them the keys as I was finished and broken. Then they sold it to another vulture fund. I took pleasure in sending the new one the bankruptcy adjudication. Now they cannot contact me.

Gloomtastic! · 27-06-2018 5:19pm

How's your marriage doing? I can't imagine how stressful something like this can affect a relationship. Did you stop telling her how bad things were or did you keep talking? Do you have kids? Are they aware of what you've gone through?

Agent Smith · 27-06-2018 5:30pm

Do you have a bedside locker.

Whats in your bedside locker?

minikin · 27-06-2018 5:47pm

What was the debt charity that you went to? Stepchange?

I'm a bankrupt student, AMA · 27-06-2018 5:48pm

Gloomtastic! wrote: »

How's your marriage doing? I can't imagine how stressful something like this can affect a relationship. Did you stop telling her how bad things were or did you keep talking? Do you have kids? Are they aware of what you've gone through?

My marriage is quite strong, but my wife was unfairly dismissed from her job while all this was going on, so she had her own issues. We really got kicked from every direction. As staff were let go, she had to come and help me more and more. People's arrogance was an issue. I had my 14 year old helping me one day and a dickhead told me she should not be there, she should be in the playground. I was fighting for survival and got nothing but grief.

My daughter was quite sensitive to the goings on and got very upset when my wifes card was declined while doing food shopping. "Are we broke? blah blah blah." We were not, but the money was in the wrong account at that moment. In preparation for bankruptcy, my wife opened her own bank account, just in case the banks froze mine. They did!

I'm a bankrupt student, AMA · 27-06-2018 5:50pm

minikin wrote: »

What was the debt charity that you went to? Stepchange?

The IMHO, Irish Mortgage Holders Organisation. The lady in there was very supportive and would recommend them eternally.

I'm a bankrupt student, AMA · 27-06-2018 6:18pm

Agent Smith wrote: »

Do you have a bedside locker.

Whats in your bedside locker?

Valium

ANXIOUS · 27-06-2018 6:27pm

Are you taking convenience shop like a Spar or Centra?

I'm a bankrupt student, AMA · 27-06-2018 6:36pm

ANXIOUS wrote: »

Are you taking convenience shop like a Spar or Centra?

Yes. A hard german discounter opened near me and that was it. Also. the council in their wisdom, introduced pay-parking and that killed the entire street.

ANXIOUS · 27-06-2018 6:44pm

I'm a bankrupt student, AMA wrote: »

Yes. A hard german discounter opened near me and that was it. Also. the council in their wisdom, introduced pay-parking and that killed the entire street.

Thanks can you explain what you mean about customers making demands on you and requiring supplies delivered?

Also with your level of debt I'm guessing you bought the building rather than the leasehold?

I'm a bankrupt student, AMA · 27-06-2018 6:54pm

ANXIOUS wrote: »

Thanks can you explain what you mean about customers making demands on you and requiring supplies delivered?

Also with your level of debt I'm guessing you bought the building rather than the leasehold?

A customer had a large order at the weekend, hundreds of euro, but then wanted daily deliveries of 10 to 15 euro, then demanded sale or return. So having to open up, drive up to them, then also take returns made it operate at a loss during the week. They used to buy other things but then their head office gave a contract to a cash and carry, so they could not buy other things off me.

The level of debt was due to it being set up as,I bought the building, and rented it to my company - me!. So, as the business died, I was left in the lurch. The bank who financed it - no names mentioned, went under, and sold it to a vulture fund who waited, but as I couldn't pay, they took it. I was left shell shocked, jumping when the phone rang or I got a brown envelope. I nearly cracked up. My nerves were gone.

Now Ye're Talking - to a Bankrupt Student

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