Hello Fellow Cryptomaniacs,
Everyone that is involved in the crypto space, we all heard that the biggest lending platform has closed up shop and closed off their lending platform. I'm not going to write up about what you should have known blah blah blah. All the people out there that was waiting for BitConnect to collapse and claiming that this was coming should not even continue to post during aftermath. If they have no solution to offer to those who truly did not see the signs and how to get out of this financial mess then they should move on and stop posting about it.
I've lost quite a bit of capital myself in the BitConnect platform but I chose to hold on to my BCC coins because it is a blockchain coin. So here are some options of what you can do with your current coins of BCC.
- Hold and hope that the BitConnect community decides to develop something else with regards to BCC
- Sell your BCC at the current highest price (Your time may be limited once the BCCX ICO is over)
- Convert your BCC to BCCX while BitConnect still is honouring the $150 BCCX/BCC coin until the ICO is over
- There is another option but I do not want to go into this and its a very dark place to be in. If you know what I mean, then I urge you to continue reading.
I know some of you were thinking before this collapse was that you either quit your job, burnt your bridges, thinking about early retirement, dumped every single dollar you had into this or even borrowed money via mortgage, family friends etc. into this platform. I've written this post for you who took this to the very extreme because I have a risky mentality myself and I always wondered what would happen if shit hits the fan.
Depending on the severity of the loss your options of moving forward and starting to feel good about yourself and your situation are below and it is not ranked in any particular order:
- Bankruptcy or Consumer Proposal
- Go back to work
- Team up with your partner, spouse, friends, family etc. to brainstorm
- Create a fitness plan
- Start leveraging your credit report profile ASAP (Do this before filing for bankruptcy)
- Look into things like Uber, DoorDash, Foodora, etc. to supplement your income
- Start selling things on craigslist or kijiji
- Airbnb (If you own your home)
- Look for a roommate (if you are renting)
- Get involved into another lending platform (This is again is highly risky)
Bankruptcy or Consumer Proposal
Let me tell you why this should be one of the top 3 options for you if you were heavily leveraged. If you happened to pull equity out of your home via mortgage or line of credit to fund your BitConnect venture, then I encourage you to file for bankruptcy. Its in our system for a reason and is heavily pushed as a negative option. I do not care about what the trustee has to say about taking this route. Financial experts do this all the time for their business and if need be, they would claim it personally.
Why?
The reason is because your debts will be wiped out clean and depending on the court proceedings with the bankruptcy route, you may be able to hold on to your home even all your other debts are completely wiped clean. Some of you may have to agree to paying a sum amount monthly but hopefully you end up not owing anything at the end (minus your fee for the trustee that is representing you). Now I have never gone through bankruptcy myself but my family member has gone through consumer proposal which I found to learn that this option was stupid in my opinion. Consumer proposal means that the creditors has to allow you to pay back only the principal of the loan and must forfeit the interest. What I didn't like about this option for her at the time is that they need to shell out $750 per month for 5 years and their credit report would not get any better since it was frozen from the proposal. So at $750/month X 12 months/year X 5 years = $45000, this did not make financial sense for me. I would have just went all the way and just file for bankruptcy and keep my $45000 and wait 7 years before I can rebuild my credit. At least I would have money in the bank every month to show for it while I was labeled as "bankrupt".
TIP - If you decide to do this, make sure you set up a bank account at a bank that does not have any credit history about you and was not effected by the bankruptcy proceedings. Pay your bills from here, put your payroll into this account and the minute you save $500 start applying for a secure credit card. Meaning, the bank holds $500 of your cash and they issue out $500 in credit via credit card. Purchase everything on this and pay it in full for the next 7 years because when those 7 years comes around and the bankruptcy file gets lifted off your credit bureau, all of those 7 years of credit history on that credit card will not be suppressed and will reflect positively for you (if you were paying it off in full every single month without fail) By doing this, you save yourself another 2 years after 7 years because the average person coming out of bankruptcy would have to wait for another 2 years to re-establish their credit but however, for you, if you were proactive and got that secure credit card, you would have been ahead of the game right from the start.
Go Back To Work
Depending on the age and how you may have left things at your previous job, this may be an option for you. If you happened to burned your bridges from your last job you held, just start working somewhere else but make sure not to put down your last employment or use any reference from your last job. Your last employment has no obligation of giving you a good reference so be smart about who you decide to put down as a reference.
Teaming Up With Your Spouse, Friend, Family, etc.
For some of you that have kept everyone in the dark about how you were going about BitConnect, the terrible news needs to come out. If you borrowed money from friends or family and still have not told them, now is the time and to start working together to move forward from this point. If your friendship or family has a strong enough foundation, then this tough time will pass.
However, if you are keeping this away from your spouse and have not told them. Understand this, they should be first ones to go to easily when things like this happens. They are suppose to have your back 110% and if they happen to turn their backs on you when you needed them the most, then you my friend have chosen the WRONG partner for the rest of your life. A realistic partner should understand that there are ups and downs in life and that you both are just experiencing a down point right now and that you should not be afraid to let them know what's up. The idea here is to let them know and that you have a game plan and you want them to tackle this situation together. Once you both come out of this, you will look back and see that this is just another reason why you two were meant to be together.
Creating a Fitness Plan
This is straight forward because in order to keep moving forward, you need to start feeling good about yourself. The best way to keep yourself feeling good and keeping up with the positive mind is by starting with a fitness plan. You will be at the peak of your stress right now and it will only accelerate the potential illness down the road. So if you truly want to bounce back from this and you truly believe this then make sure that this is something you do right away. The illness does not kill you, its the level of stress that does so do not wait, start NOW.
Leveraging Your Credit Report Profile
This is highly controversial option but if you are deciding to go bankrupt you might as well get paid by applying for more credit cards, lines of credit, etc. and cash out and hold the cash somewhere during the whole bankruptcy proceedings. If they happen to ask why you decided to apply for credit which you knew you could not be able to pay back you can easily come up with a reason that you needed to pay off some 'shark loans', put food on the table or whatever. Again, this is something that I would do if I decided to take this route.
Uber, Doordash, Foodora, Etc.
If you are already working then looking to supplement your income should be a given. You need to give up the idea of having weekends for the next little bit and focus on rebuilding your financial nest egg as quickly as possible. Getting started with Uber or Doordash or anything that is local to you that utilizes technology to disrupt an existing business should be part of your game plan.
Selling Things On Craigslist, Kijiji, Etc.
The good thing is, if you happen to have a lot of things at home that you barely use, start selling them and earn some money from that. Pretty straight forward with this one.
Airbnb
If you happen to own your home then you should look into using Airbnb to maximize the income of your property. You can rent a room or a whole floor but depending on where you are located, your city laws will determine if this option is viable for you. Where I am, Toronto, Ontario, I must be residing within the unit that I choose to Airbnb so that is a risk I need to be willing to take.
If You Are Renting
The only option here is to either looking for a roommate to subsidize your rent or looking for a cheaper apartment for the short term.
Another Lending Platform
I chose this option myself since the platform is passed the adoption phase and is going into the stability phase and I believe getting involved now should mitigate some risk. Please do not choose this option if you do not have any funds whatsoever because you can't afford this risk. I can't guarantee that this option will be up and running the next day after you decide to participate. As of right now, I have recouped about $8,000.00 as of Jan 20, 2018 with a total investment of $33,000.00 and by Mid February I should be playing with house money going forward.
At this point, you should be focusing on increasing cash flow into your life right now. Meaning, reducing expenses and increasing money coming in (cash flow). If you have to get rid of the second cell phone line, cutting cable, taking local transit versus taking the car, living at home with your parents, whatever it takes for you to put more money back into your pocket per month, you must do that NOW.
I will provide a link for the other lending platform for those who can take the risk (ASSUME THAT THIS WILL CLOSE UP TOMORROW) then here it is:
https://davor.io/Account/Registration?r=080302
I thank you for your support as every little bit helps and I hope that this finds to those people that are going through a rough time. Just know that you always have options as long as you are living and breathing, only you can decide if you choose to look past this and see the positive. Good Luck and see you on the profit side.