Ivan Oliver Unruh

1
Ivan Oliver Unruh

• By
• Richard Holden

2
Ivans Income

• Ivan sells shoes
• He makes 1,000/month
• He pays
• 500/month for his house
• 150/month for utilities
• 200/month for food
• 100/month for clothes, gas and entertainment
• What does he have left to spend?

1,000 (-500) (-150) (-200) (-100)
1,000 (-950)
50
3
January 2006

• In January, Ivan
• Charged 350 on his credit card for a trip
• Bought a 500 stereo on layaway
• What was Ivans deficit in January

50 (-350) (-500)
50 (-850)
-800
4
February 2006

• In February, Ivan
• Signed a contract to purchase a used car for
  3,000
• Bought a 500 stereo on layaway
• What is Ivans deficit in February?

50 (-3,000) (-500)
50 (-3,500)
(-3,450)
5
March 2006

• In March, Ivan
• Borrowed 150 from a friend to buy games
• Promised to pay a mechanic 350 later for fixing
  his car
• What is Ivans deficit in March?

50 (-150) (-350)
50 (-500)
(-450)
6
Deficits Add to the Debt!

• So far this year, Ivan had deficit spending each
  month
• January -800
• February -3,450
• March -450
• What is Ivans total debt so far for 2006?

(-800) (-3,450) (-450) (-4,700)
7
Ivan O. Unruh Goes to Court
Ivan, does it ever bother you that your initials
are I.O.U.?

• Ivan is finally sent to bankruptcy court
• The judge orders Ivan to give back all of his
  belongings
• In turn, the court will subtract 4,500 of his
  debt
• What debt remains?

(-4,700) (-4,500)
(-4,700) 4,500
Judge I.B. Mean
(-200)