Yep, I even had an executive summary. This was the front page of the document I pre-submitted to the courts. Names, and some other personal information of others, have been removed.
With the submission of this document, I would like to register my objection to the recommendation in the 170 Report, that my discharge be opposed.
While I do accept responsibility for the events that led up to the bankruptcy, I wish to demonstrate
- that there was nothing rash or hazardous about my speculations, and
- that there has been no unjustifiable extravagance in living, and
- that I have not mismanaged my financial affairs.
Out of consideration of your time and the cost of the system, I wish to outline the intricate details in this document that I will submit in advance to both the court and to M. L_____, my trustee, directly. The details outline the three charges listed above and are summarized here.
First, my actions that led to my current state of affairs were neither rash nor hazardous. Taking the course that would ultimately change my life was not rash but based on a recommendation from a trusted friend and mentor of nine years who I held in high esteem. Investing in The Hear Now (THN), my main investment upon which my success hinged, was not a rash decision. It was an investment that ultimately bilked $7 million from the pockets of Canadian investors, and by March 2010, the Alberta Securities Commission (ASC) found the directors of THN guilty of illegal distribution.
Second, there was no unjustifiable extravagance in living. My FICO score in 2007 was 815. I was excellent with money. Within three years of graduating from my Master’s, I had paid off all of my student loans. In purchasing my first condo, I had saved $25,000. My values included excellent spending habits, a healthy aversion to debt, and compliance.
Third, contrary to the 170 Report, my finances were not mismanaged. The funds for investments were primarily funded by a HELOC. Consumer Credit was used for smaller investments, but primarily tapped into when costs began to spiral out of control. Monthly costs were at some points as high as $10,000. Investments were diligently monitored and managed. Further, we decided our family structure would work best with one parent (myself) being self-employed. It worked for the first three years, and then employment opportunities dwindled.
I do believe I am rehabilitated, and I sorely regret that I’ve had to default on my debts and declare bankruptcy. There is no chance of this ever repeating in my life.
In court, in person, I hope to briefly present
- the benefits of a timely discharge,
- my tremendous regrets and the price I have already paid, and
- my plans to return to the productive lifestyle I once enjoyed.