Bankruptcy gave me a second chance, I am now on my way to being a millionaire. Filed n 2015 after getting out the military and having a hard time finding work. People do absolutely change their habits. Maybe not everyone but some people do
@@JasonGroomif you are current with payments they let me keep two cars, not three. I paid off our third car before the discharge and still have the three cars.
So to sum up the answer, filing theoretically works from a math perspective but Dave’s advice is not to in order to build character and integrity- or something like that 👍🏽
I know Ramsey fans will disagree, but Bankruptcy was the best choice for me. I went through a divorce, had to start over with half the capital to live on and a disabled child who needs me 24 hours a day for care. I also used this lesson to fix the “me” issue - so yes, it was absolutely great for me. I combined my decision with Dave’s advice and 2 years later I have rebuilt my credit to 700+ with a 25.00 a month credit card payment. I pay off that balance every month, after my scheduled 25 buck payment posts to my account (as on time) and my credit report is updated. With no debt, I keep 70%cash of my income in margin each month after expenses, which allowed me to save a full emergency fund and a down payment for a home and yes, now I’m buying a home (debt free) with a competitive interest rate (despite my chapter 7). Honestly - yes, bankruptcy can be the right choice, if you actually do the right things after.
Thank you for sharing your story! I think your situation is one of the rare cases that they talk about. The important part is that you learned from those experiences and chose to better yourself to avoid having to go through that hardship again. I have family members that are so irresponsible with money and look at bankruptcy as a "get out of jail free" card just to start the process all over again years later. Keep up the hard work and keep on succeeding!
I filed almost 7 years ago, and it was one of my best decisions. I fully recovered, built a house, and have lived responsibly since. I believe in course-correcting and hitting the reset button when needed. Life is too short to not forgive yourself and move on.
You sound like someone who went to prison. Yeah I murdered someone but I went to prison, got out and I haven't murdered anyone since. Yeah but you still did a bad thing. Racked up a lot of debt amd said screw everyone else I'm not paying anyone.
@@teamtakeover7317murder and bankruptcy are not even on the same plane. If u are mad at a person filing bankruptcy for 30k in credit card debt. U don’t wanna look up how many businesses have filed on millions and millions and BILLIONS of dollars in debt and got away with it.
Bankruptcy is a legal option that should be considered when you are so far in debt that you cannot easily get out in less than 7 years. Some of these people that call in with 250k in consumer debt only making 60k a year, are prime candidates. Since credit doesn't matter on this channel, why would it be so wrong to take the legal option that is lawful, especially considering Dave Ramsey himself did it? People today still don't have access to all the same resources Dave did, and he still felt he needed to file.
Interesting Rachel starts off by saying Bankruptcy is not a good solution to avoiding debt. Then Dave discusses how his bankruptcy (and his "stupidity") was the basis for starting Ramsey Solutions (a very successful company).
Exactly - yet all the morons who come here to praise Their bankruptcy - as if thinking they’re still unique. Fyi, if you filed it legitimately you still had to pay it back as Dave says 2/3 through the video. You’re def not unique and you’re all stupid.
Yes! Just got discharged last Friday, I am better with my money (now) by going thru the process & wont ever get back in debt bc I am now following the Dave Ramsey baby steps but for me it was the best option & have NO REGRETS!
This is the dumbest advice and it’s full of shame! The rich uses bankruptcy all the time as a debt restructuring tool. Don’t spend 10 years of your life paying down ridiculous debt to only die early from stress. Talk with someone who knows what they’re talking about… like a bankruptcy attorney. Get a legal, fresh start if you need to and enjoy your life! (Also you should divorce if you’re unhappy).
52k worth of credit card debt. Tried for years to pay it down. Filed chapter 7 bankruptcy recently and it’s the best decision I’ve ever made. Life’s too short to be chained to these credit card companies!!!!
You fight until you can't fight anymore, then file the damn thing. It's not the end of the world. You will recover much faster and better on the other side IF you truly are bankrupt. Many are NOT, and still file. That's what Dave is speaking about. Plus, sadly if you don't address the pattern of what got you there in the first place, you will find yourself needing to file Bankruptcy again. Also, Dave fails to mention the best and most powerful aspect of Bankruptcy- The Automatic Stay
My husband at the time took out an SBA loan, I was a stay-at-home mom, I did sign off on the loan. We divorced. Instead of him paying on the loan, he filed bankruptcy. I was left with nothing and now have a loan delinquency. This was his business and he was the principle. Now I am stuck.
I knew a woman who, along with her husband, filed for bankrupcy and got rid of over $140,000 of consumer debt. They continuted spending and tried to file bankruptcy again several years later, after the minimum amount of time had passed to file again. This time it was denied. For them, it had been a painless way to avoid paying what they owed. There were no negative consequence for them, because they were able to keep their house, three cars, vacation trailer, etc. while they continued to spend.
same thing I did pretty much lol...... I bought a house and went into a bunch of debt after that and filed for bankruptcy..... didn't have to pay back any debt and learned my lesson a few years later was able to buy another house..... it's basically an easy way out as much as people don't think so... only difference is I didn't keep doing it
Today I feel that the Insane Cost of Healthcare & Hospital care is probably a huge reason for Bankruptcy in 2023 . . "Twin babies & catasrophic infant disease that took the life of one of our babies, was the reason I filed for Bankruptcy in 1960's. The judge (referee) had most other couples filing that had medical expenses & we were quickly filed through - Only one person filing was scolded & forced to make payments (chapter 13?) He was a "salesman".
i have a great credit history , never a late payment and zero negative marks on my credit report for over 10yrs . but in the past 3yrs ive been going to rough times like most are , my income has desreased each year and then this year had some medical issues and surgery which caused me to miss about 2 months . but im still paying all my bills on time !! so ive tried getting credit card companies to lower my interest rates not any forgiveness just reduced interest rate and they told me No and its now 30% interest., im not going to be able to live and have my personal needs soon and everything i make will all be going to credit card companies . i dont know how im going to avoid bankruptcy now !!
Bankruptcy means nothing any more. I had loads of medical debt I could not pay. I went bankrupt and 4 years later got a mortgage. Literally after the first year of bankruptcy you can easily get a credit card and build your credit back up. If I didn't go bankrupt I'd still be paying that medical debt and possibly homeless. Also Dave went bankrupt when the bills were too high for him. So him telling anyone not too for moral reasons or whatever is just funny to me. Rules for thee not for me...Right Dave?
I don't own any property or assets but I just got a loan on a house and a car with no equity built my sister is suing me for around $10,000 and she received a judgment for $4,400 of us so far what bankruptcy be a good option
What is Dave talking about with life insurance ?! I know a 31 year old girl with 5 kids. Her ex just died tragically in motorcycle accident in his early 30s. She had 3 of her kids with this guy. She got half a million from life insurance policy. Really helped her out.
People sell whole life insurance and say you can cash out it’s value…. But instead of being less than $50 a month it’s like $150 a month. So it’s just a crappy investment bundled with a crappy life insurance premium where they keep more than you do. Dave will say if you get term life and invest what the whole life goodies would ask of you you will always end up ahead. Which I think you will. I had a guy try and woo me with whole life insurance bragging about a 5% return (~2018). Really? 5%? HA!
Seems like bad advice, recommend running the numbers for a chapter 13 before making a decision. Also, if unemployed seems like chapter 7 is the way to go. Once you get so far behind in credit card debt you may never pay it off even with six lousy jobs....
The issue with chapter 13 is you can usually do this yourself and you don't need lawyers. You don't need legal judgments. You simply go to your creditors and basically say I cannot do this. I'm a month away from filing bankruptcy and I don't want to do this. If I file you get nothing. If I don't, then can we make adjustments to the payment agreements? The conversation moves from there, and its obviously not the full conversation. But the point is you can do this yourself. Bankruptcy is for the situation when your creditors won't listen to reason.
We felt at the time it was the only way to get out of a time share and severely upside down travel trailer. We’ve got 1 year left on our chapter 13. We DEFINITELY changed and learned our lesson and we’re reminded every month when we pay our stupid tax to the chapter 13 trustee. Looking back and knowing what I know now we wouldn’t have done it. We’re so grateful to be on the Ramsey plan …. I won’t even finance a cell phone now 😂
At 40 years old, I left a $130K/yr Private job and took a $65K/yr Public job, same job. 20 years of service got me a ~45% pension AND Free Lifetime Family Healthcare. A $475K bill>> $300 Co-pay + $45 worth of midnight grilled Cheese sandwiches. 7 surgeries at $30K each, $300 Co-pay each. Free joint replacements, Dental, vision, medications. At my job, there were Many people that left the $65K job for $130K. A lot of that 66.5% are people who retired without medical insurance or pay the 20% Medicare %.
If credit card if credit card companies keep jacking up their rates and won't work with the consumer... I've asked for lower rates, I'm retired but still work in retail & am now on hamster wheel of basically paying interest....
Do we expect dead corporations to pay pack their debts? Why do we treat individuals any different when rule of law says that a business or entity is treated as an individual? Our system is designed to throw debt away. Leave the morals out of it. This is law and math.
During the last economic crash, I came close to filing for bankruptcy once. At least that is what I was advised to do. I chose not to. I quit the lawyer who recommended I do that because it made me feel almost suicidal to think my life had reached that point. Instead, I chose to call my creditors myself and do what I wanted the lawyer to do for me. I explained my circumstances and asked them to stop the interest and put me on auto-pay. A couple of them even settled with me if I set up a plan with autopay. Then it was beans, biscuits, and bald tires for 3 years. Just kidding I learned used tires can be a bargain in a pinch.
I’m glad to hear the bankruptcy laws have gotten tougher. It’s never been right for people to think it’s ok to rack up a lot of debt and just file bankruptcy to get themselves a ‘fresh start’ with their 6 figure income, forcing other people who probably make alot less but are responsible with their money to pay for life choices that weren’t their own. Have some integrity and pay your own bills.
I agree to disagree in a way for example if you a decent job car and mortgage children and all was going well until job cut hours pandemic situation and now you are burning your savings and struggling then yes !!! If you make 200k or better and bought a Porsche living high end then I say screw them
My parents filed for bankruptcy over ten years ago. Unfortunately, they learned nothing and it feels like they are in a similar, or going towards, a similar situation than what they were in. As far as I can tell, it doesn't teach you anything to help you truly build wealth and stay out of debt.
My sister has filed bankruptcy twice. She went right back into deep debt each time. The only reason she didn't file again is because she ended up on disability in assisted living.
Remember "Pay off your high interest credit cards with a home equity loan from DITECH"? within ~2 yrs, 88% of the HELOC borrowers had remaxxed their credit cards. It was kind of saying "I'd like to finance my jeans over 30 years, please".
I am curious: they talk a lot how you should not use credit money, loans and use your own money for things.. and in cases like this they talk about credit rating staying in your profile for long time. Like Why would I care about credit rating if I am not going to apply to any loans like Dave advised to do? What is the logic behind all of this? I get it, that you have to learn that "solving problems with loans is bad" but if you file for bankrupcy you will get bad credit rating and will not get any loans anyway, so you will be forced to learn the other way of solving your financial problems. I support 90% of the things Dave talks avbout.. but this one is ridiculous. Looks like he is afraid to be shut down by government for advising people to go baknrupt instead of financial slavery.
It's more so that it doesn't help as much as people think. There's some bills it won't eliminate. I forget the details, but they had a caller once ask about bankruptcy on over 100k as I recall. But when they went through it, they really only eliminated the credit card debt which was a small portion of the overall debt. So it didn't help. If your debt is cars. Well they are taking your car. So how are you getting to work? I don't think dave I'd against filing bankruptcy. I just don't think he likes advising a big negative like that when he's talked to you all of 5 seconds.
"If you can pay your bills and you just refuse to, that's stealing." YES. I see this more and more often. It's disgusting, especially with these student loan debtors.
The person you become from grinding through the months/years and changing your behavior to get out of debt is far more valuable than a “get out of jail” free card. It’s harder but you’ll end up a way better person who will never get back into debt and make the same stupid decisions.
They harp how u will feel better about yourself struggling to pay it all back over years. Doubt it. I was depressed, suicidal and couldn’t sleep at night because of the debt my ex wife racked up. Divorce and bankruptcy was the only option. And mentioning is stats on your report for a while. Do they mean credit reports that they vow are useless?
You can tell how much that bankruptcy affected Dave; he knows how it all played out down to the last detail. He knows where he is but appreciates where he's been.
@@barnabusdoyle4930 BS. He tells people not to do it for things they can control. You shouldn't be doing it with a $60,000 vehicle you can get rid of. It won't help for student loans. Doing it to erase credit cards is useless if you don't stop using credit cards. He used it as a last ditch resort, as he said, and advises people to do the same. My parents did it and it limited what they could do with their lives for 7 years.
I’m financially ruined because of my wife (whom I’m divorcing) roughly $100k in unsecured debt, and $340k in secured debt. Luckily she didn’t ask for anything for the divorce. But bankruptcy is looking like my only out right now. And something would have to drastically change my income, in order for me to not consider it.
If all you have is consumer debt, you make less then the median income in your area, & you don’t see yourself paying it off within 5 years with an aggressive budget, I would file for ch7 bankruptcy. It will get rid of all that debt, fresh start and follow all of his advice from there.
Another thing that's unethical is a sibling asking his elderly mother to rescue him from potential bankruptcy. My mother did not have a lot but that did not stop my brother from asking for a bailout. Could not believe it.
YES it is! My best friend let his home get foreclosed on and declared bankruptcy. In less than 2 years it was like it never happened. If people didn't live beyond their means and live ass in debt the entire monetary system would collapse. The "system" doesn't want you doing the right thing when it comes to money, why they don't teach finance to kids early. Live in debt, work a job you hate to pay on your debt is just a form of slavery.
If Dave rebound from a BK, so can I. After a chapter 7 is discharge, a person can have a credit score of 700. After 6 months of filing you will qualify for a credit card.
It can. But... what situation would you rather be in. Paying hundreds of dollars a year for a very small life insurance policy. And depending on the situation the life insurance company may completely back out of the agreement leaving your family with nothing. Or having a giant pile of money knowing your family is going to be fine pretty much no matter what happens? Term life is fine while your building your pile of cash. Afterwards it's just a distraction that's no longer needed.
Same. I’m on a 100% plan, get to keep my bonuses and tax refunds. All of those will go toward my emergency fund. I will be debt free in 5 years. I don’t mind bankruptcy being on my credit 2 more years after.
I have never been close to bankruptcy but I’ve known plenty of people who have filed. When I watched what they did beforehand, I always wondered how my life would be if I cut out most of the non necessities and absolutely NEVER borrowed money for things that weren’t a dire need. So I did just that. As a result, I have little stress, never worried about money and never spent more than two months in debt on anything. Plus, I found how enjoyable a simple home life can be, leading the extravagant activities to actually be more fun since I’m not doing them as often as those who would take out a five figure loan for a wedding ceremony and are in crippling debt. Minimalism leads to more appreciation for what you have
Harry Truman came close to bankruptcy after his haberdashery business failed. He and Bess scrimped for 15 years to pay off their debts, while he held countywide office in Missouri. They lived in her mother's home until he was 50. His grit and character would later serve him well.
@@CarlaQuattlebaum Bess's mother (Harry's mother-in-law) lived to move into the White House with them. Accounts say it galled her to no end, after she'd said he would never amount to anything.
Don't spend 15+ years of your life slaving to make minimum payments while they make 5 times the amount you owe them on those high interest. Dave even said on this video that bankruptcy is what led him to creating his company. He probably still be making minimum payments working 2 jpbs if he never filed bankruptcy.
it took me two cycles to learn my lesson, filed chapter 13 when I was 23 and was free and clear at 33 and by the time I was 43 I was in debt again, I'm now 53 and debt free after using the snowball method for the last five years, Thank you Dave for the advice...many of my conversations with friends and family are now about how they can pay off their debt sooner.
It's not a good mindset to think that bankruptcy is somehow an "option" to just "wipe out debt" and start over. That is a major step, and NOT a good one for someone to take. I personally am not supportive of "forgiving" any debt, as we are all adults and we all signed on the dotted line whether it be a student loan, car loan, mortgage or credit card receipt. I've had my fair share of debt that I had to struggle to pay off and do without things I wanted to overcome it, and I owed all of it, as everyone should. It's called being a responsible adult. Just my opinion though.
Unless the man is hitting the woman..... i can name about 5 other reasons to file for divorce, from the top of the dome and ive been up for like 22hrs.
Viewers get dumber and dumber by day. He gave an example of a dysfunctional mess where he wouldnadvice divorce. OBVIOUSLY if a marriage has gotten extremely disgunctional/abuse/inhumane he would advice divorce omfg
Fun fact Walt Disney went bankrupt before finding success. Donald trump went bankrupt 4 times and still rich . Found out that the founder of Heinz Ketchup went bunktupt before inventing ketchup.
He was so mad when his wife showed him another bill he threw a tomato at the wall and it partially splattered in a pile of sugar. He then picked up the messy sugary tomato and smooshed it in Bertie Heinz's face. After a few moments she escaped and declared "that, dear hubby, was delicious. Boil me a hot dog, I got an idea."
Agreed, bankruptcy is an easy way out and hits credit for a few years but its changing habit of frivolous spending that needs adjustment. I've seen a few people who filed bankruptcy but didn't change spending habits. They were back in cc debt. its an uphill battle to climb out of deep debt but need to develop the habit and discipline of living below your means. thanks for sharing.
Dave 's stupidity helped a lot of people. I don't think I would be such a secure financial situation if not for the free education from the Ramsey show.
This guy seems like a narcissist. He literally stated that he filed for bankruptcy and yet he castigates and scolds others who could possibly have the unmitigated gall to file bankruptcy for reasons that doesn't appear to be as critical as his, insane.
Daves wealth now is carried by a foundation of bankruptcy in it. The government that he hates so much whipped out most of his debt which allowed him to start over. He learned from his “mistakes” after the help. You don’t have to struggle for months/years to learn a lesson or “change your behavior”. The you have to “struggle to learn a lesson” routine is old. With that being said, Bankruptcy is a tool, should be a last resort tool though. It’s process that’s stressful and mentality draining that goes on for years. A lot of ppl can get out of debt without the headache of bankruptcy.
My wife got sick. The local hospital was bought out by a for profit corporation, they do not take any insurance as "In Network". No discount and not 80/20 but 60/40 AND NO $3K max out of pocket. A $100K bill should be $3K max But no it's $40K.
Why is it everyone wants the easy way out! Buy lottery tickets or file for bankruptcy. No, dude, get a budget, follow the Ramsey method, rice and beans, get a second job, get a roommate, sell stuff you don't need and pay your bills. If the rest of us can work and pay, sacrifice, suck it up, and never ask for a handout, then why can't you? A handout is just theft. You just don't think you need to repay the bills you rang up.
An what you call a debt collector who isn't the creditor, that don't offer any credit cards or service? They are called thief. Any the bank that gave you the card also stealing when they write it off on tax and turnaround sale it to a debt collector for little extra cash. An government steal money out of everyone checks to bailout companies that also stealing
It doesnt matter real estate or consumer debt. YES file for bankruptcy as long as you can keep your house. If you file chapter 13 the debt might be less than original amount
You can keep your car and house if they are only one and principal so you can leave somewhere and go to work. But if they are luxurious or owe more then one, you will havr to sell and satisfy other depbt. So continuing house payments is not rigt but paying rent is? If you are renting and file bankruptcy you stop paying rent and move out if you can afford rent payments?@amireallythatgrumpy6508
If it is medical debt the correct answer is claim bankruptcy. I had over 130,000 dollars of medical debt and I hadn't filed income taxes for 17 years. Upon filing I had to immediately file my taxes for the last 3 years and ended up getting money back from the tax man and I had all my debts wiped out. I am now saving money and investing. What is unethical Dave is the fact that if you work all your life and you don't have medical insurance they can come take all your money. We should have a single payer healthcare system in this country. You could eliminate the national debt by simply stopping big pharma and for profit hospitals from ripping the American tax payer off every chance they get. My mother recently got out of the hospital and has had three or four different healthcare people visit her at home. One visit would have been sufficient, instead we pay for many more.
You make a bill, you pay a bill. It's called integrity. Do that and you don't have a problem. A former President bragged that he did that and he laughingly justified it by saying he used the laws available to him. Mind you the key word here is INTEGRITY and it's more important than laws that enable you to do a bankruptcy.
What if the guy is the punching bag and the wife is scum? Same answer? What if following through on divorce is the healthier option instead of forcing a relationship that will become more toxic because you don’t give the other person a choice. Sounds like borderline rape to me to force yourself upon someone else who wants nothing to do with you. My advice, be professional, be cordial and don’t force yourself upon somebody who wants no relationship with you.
Divorce isn’t always a bad thing. It was one of best decisions I made when I developed my first wife. Bankruptcy is definitely a different animal then divorce.
