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Beware self-funded Startups: failure can haunt you for a long time

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51–55 of 55 posts

Re: Beware self-funded Startups: failure can haunt you for a long time

#51
post #15
post #6

Sounds like you need cut bait and run and to declare personal bankruptcy. In 3 years of reasonable payments you will have all your debt gone (or if you have no assets outside a house and cheap car, chapter 7 even, with your debt gone near instantly). Chapter 13 doesn't last a long time, and was designed for your case. The point is not to take a productive citizen and hang upon a yoke of debt for much of their life. I…

They went through pre-Bush bankruptcy-law bankruptcy or post? http://msnbcmedia4.msn.com/j/msnbc/Components/Photos/050420/...

One I'm sure was before it, not sure on the others.

Re: Beware self-funded Startups: failure can haunt you for a long time

#52
post #15

Earlier quoted context omitted.

They went through pre-Bush bankruptcy-law bankruptcy or post? http://msnbcmedia4.msn.com/j/msnbc/Components/Photos/050420/...

The answer to that can make a big difference.

Talk to a bankruptcy lawyer. Initial consultations are free with almost all lawyers. Bring tax returns, summaries of your income, etc.

I honestly don't know about the other two. I know one of them was pre-2005 law.

Re: Beware self-funded Startups: failure can haunt you for a long time

#53
As others have written: I've been there, I survived, I learned a lot.

Carefully look at the debts and your resources and prioritize. (Secured debts and bills on active accounts (like current utilities that could get shut off) have to be paid first.) Then do what you can to whittle away the debt. Read up on debt collection tactics and law so you can tell who can really hurt you and who is just bluffing.

Then just hang on for a long ride. Eventually you will have deals with all the creditors and hopefully no new surprises will show up. [The possibility of new surprises showing up was a lingering fear for me - one extra unknown "debt" showed up almost a year later, but fortunately I was able to convince them that I was no longer guaranteeing the account when the charges were made. Which was true.]

As a backup, I had looked into bankruptcy options and positioned myself to protect myself (as much as is possible) while going through it.

IMPORTANT: set up an extra bank account at a different bank and use it to pay debts. You do not want the creditors to know where your money is. When you are negotiating a deal and/or a payment plan and then following it, you do not want them to be able to see if you have more money (even though it is not legal, it is still easy to find out how much money someone has in their bank account.) If the creditors have already been paid from your current accounts, then open new accounts at a new bank for your personal use and use the old one for debt paying. Only load the debt paying account with what is needed.

[Important - make sure the account does not have ANY overdraft protection - any overdraft should be rejected. Many creditors will accelerate the payments (and claim you agreed to it) to try to grab more before other creditors get it - this happened to a friend of mine; they agreed to a series of payments and the creditor simply submitted the whole batch each month to see how many would clear.]

When negotiating, make your starting "debt" for negotiation the actual amount owed. The creditors will use an inflated amount (including a LOT of interest and penalties) as the starting point so you will have to get 25 to 50% reduction just to get the the original debt amount.

Re: Beware self-funded Startups: failure can haunt you for a long time

#54

As others have written: I've been there, I survived, I learned a lot. Carefully look at the debts and your resources and prioritize. (Secured debts and bills on active accounts (like current utilities that could get shut off) have to be paid first.) Then do what you can to whittle away the debt. Read up on debt collection tactics and law so you can tell who can really hurt you and who is just bluffing. Then just hang…

"When negotiating, make your starting "debt" for negotiation the actual amount owed. The creditors will use an inflated amount (including a LOT of interest and penalties) as the starting point so you will have to get 25 to 50% reduction just to get the the original debt amount."

Can you explain this a bit more? I'm not sure I follow it.

Re: Beware self-funded Startups: failure can haunt you for a long time

#55
post #33

You asked us, "what on earth do I do now?". I recommend you start another post and change your question to "how do I monetize millions of users?". Give us a description of your market without revealing your business of course, customer profile (age, income, etc) , how much information you have on them (do you have emails? location? interests etc), and how much time they spend on your site. I'm sure you'll get much mo…

Very true! I will wait a week and gather those thoughts for a post next Sunday. Of course, it's not that we haven't thought of things, but how much good time do I want to throw after bad? But how insular I have been to not think first of posting that question. Thanks!

You may very well be able to sell the company simply for the user base...
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