FIRST IT'S THE JOB, then the car goes, and the phone and furniture. Now you can't pay the bills. The bank account is empty, credit cards are at their limit and your clients sue.
Your mortgage still has to be paid, but the property has plummeted in value. Your stocks have taken a nose-dive; you cannot meet the margin calls; legal letters are flying; and debt collectors are banging on the door.
At which point would you throw in the towel?
It took months of legal wrangling and at least half a dozen court hearings - without the aid of a lawyer - before Raymond, a businessman, finally admitted defeat. During these court appearances, he pleaded with a judge for more time to pay off his creditors. His business hinged on payments from clients that dwindled at the onset of the recession. Eventually, the cash-flow dried up completely. He could not pay suppliers, so they stopped calling.
Raymond - which is not his real name - sold his car. He borrowed from his friends and family. The cash barely met a fraction of the sum due to his creditors, so he lost his flat when the bank called in the mortgage.
During one court appearance, he informed the judge that he would sell his gold watches to repay some of his debt. It would not be enough, but the judge allowed him more time when he mentioned that his wife's jewellery would be next.