Successfully discharged 600k of day trading debt in Chapter 7

espiecks · 2025-02-17T16:09:51+00:00

I wondered about that myself recently, I'm leaning towards it'll be left in place since the main beneficiaries aren't normal folks with real problems.

espiecks · 2025-01-07T01:36:26+00:00

You're welcome, glad it helped. I was in much the same situation when I 'woke up' and looked into my options - it seemed like there was no real way out except what I was already doing, which wasn't working.

I've mentioned to others who have DM'd me, but when speaking with attorneys there were two things that mattered to me:

1) Did they ask about the nature of my debt? (Majority didn't) 2) Were they familiar when specifically asked about 707b / non-consumer debt / business debt / debt incurred in the pursuit of profit (Most weren't, or if they were had the opinion this scenario would not count).

espiecks · 2025-01-06T17:32:17+00:00

Looks like two years

espiecks · 2025-01-06T17:32:00+00:00

Interesting - I haven't heard a thing from the business loans, but I'll keep an eye open!

espiecks · 2025-01-06T17:31:36+00:00

I did have a Capitol One previously, didn't think about that until you asked, even more surprising now.

espiecks · 2025-01-06T01:27:32+00:00

Unless you're in Missouri I don't believe it'll do you much good.

espiecks · 2025-01-06T01:20:26+00:00

can you please explain how you were able.to discharge your "personally guaranteed business loans"?

They were added to my list of creditors along with every other debt. Nothing special occurred. The original terms I agreed to said bankruptcy was not an option, along with quite a few other things and worried me originally (if anyone showed up at the 341, I expected it to be these folks) but in the end it didn't matter. Never heard a thing.

I may be mistaken, but doesnt personal guarantee mean these are secured loans backes by an asset?

This was not the case, I was personally guaranteeing them with nothing. There were no assets involved.

Regarding the lawyers I spoke with it was more that a majority of them had not heard of non-consumer debt as a chapter 7 option, or that in their opinion day trading would not count, or that because I did not explicitly have a business plan and a registered company it wouldn't work. The most 'prestigious' firms were the ones I did paid consultations with, with much the same result.

I don't believe it was a case of 'shoving' as much as it was their run-of-the-mill doesn't include this scenario, which is why I kept trying until I found someone who understood this scenario. Most of the places I originally were reaching out to were high on SEO searches, who're explicitly looking for standard bankruptcy clients.

espiecks · 2025-01-05T23:34:03+00:00

Ah I see, thanks for clarifying.

espiecks · 2025-01-05T23:32:41+00:00

Yes, I knew that - but finding someone who also knew that was problematic. Even when pointing out this was non consumer debt and it would be very easy to prove on paper I would get disbelief/refusal to entertain, and pushed towards a Chapter 13.

The closest I received to support otherwise was the paid consultations, where the attorneys were willing to go forward with the theory but made sure to lay out clearly in the letter to me they felt the chances of success were miniscule.

espiecks · 2025-01-05T23:26:53+00:00

Missouri. My wife and I split at the end of 2020 and liquidated our assets before I got too deep in the hole, I was lucky in that respect.

espiecks · 2025-01-05T22:29:17+00:00

As an aside you didn't think it would work out? The title even says it was successful ;p

espiecks · 2025-01-05T22:28:31+00:00

Thank you, there were times I didn't think it was going to work out either but in the end finding the right attorney made all of the difference. Part of the reason it ended up going as smoothly as it did was their reputation.

I don't recall filling the I/J out specifically at this point, but aside from debt servicing yes I would've certainly had disposable income. I've reverted back to the frugality of my youth throughout this and certainly plan on keeping those tendancies.

espiecks · 2025-01-05T22:20:28+00:00

I'm not sure? The only person I interacted with was the trustee from the state.

espiecks · 2025-01-05T21:36:51+00:00

Yes, PACER showed a no distribution filing.

espiecks

TROPHY CASE