When Should I File Bankruptcy? - Dave Ramsey Rant 

Filing for bankruptcy was the best move I made by a long shot. I wasnt about to pay $55,000 worth of debt plus interest. I now see the fruits of my labor, able to work one job and actually enjoy the house I reaffirmed.

I think why Dave is so against bankruptcy is because it's not part of his business model. Think about it... He sells and preaches get yourself out of debt using the baby steps. If everyone just did bankruptcy, he wouldn't be in business.

A guy that filed for bankruptcy 2 times telling people not to do it. Filing for bankruptcy works which is why he filed twice

I am 48 yrs old and deliver pizza for a living and have 20,000 in debt. I am filing bankruptcy. I can't take this anymore.

If millionaires can several times way can’t we?

Glad this video was about divorce rather than when to look at filing bankruptcy....

As an attorney practicing bankruptcy I have to say this is really bad advice. If you simply "not pay your debts for a little while longer" they will snowball and can end up as liens on your house which will kill your equity if/when you try to sell. There are plenty of really good reasons to file bankruptcy. The comparison with divorce is completely irrelevant and he gives no real reason for making the comparison. Sorry Dave, I like alot of your advice but this is terrible advice. Please talk to a bankruptcy attorney and then give people a real answer.

What a hypocrite. A supposed financial expert who filed bankruptcy. I’ve lost all respect for this joker.

I am a single mom. I was almost debt free in 2021, then inflation and everything else hit. After paying my bills, I have $389 to my name for gas and groceries. This is why my debt is so high--I pay my bills but have nothing to live on, so I use my credit. It is scary! I will be filing within the next 4-6 months...it's that or my creditors lose out more.😢

I had one credit card which got out of hand I let it stew for about two-and-a-half years. In court I settled it for $1,000 instead of 10,000 and deletion from my credit report

He never said Don’t file bankruptcy, he said “I am NOT going to tell you to file” be sure to do everything & some before you even think about doing it.

Bad advice Dave Everyones journey is different I filed chapter 7 One of the best decision I made

Also, bankrupcy only works if you learn from it. Even if you are able to discharge everything, that means nothing if you go back to your old habits

I went for a BK 13. Best move in my life. I still end up doing 90 hour pay for two weeks but most of that pay went into my future and savings and being a landlord verse paying off my debt of $40k. I had $300 monthly for 3 years. Paid around $15k cause they also took my tax returns for 3 years. I would tell everyone to go bankrupt and just be better with your money and start fresh. Work extra hours, spend less, make more and save what you don't use. I have no plan to have a credit card. Never used one since 2009 when I just stopped paying them. And my credit score went from 512 to 690 in 6 months with a secured loan of $2k. I put extra to cover the interest. Then the moment my credit score was enough to meet the qualifications to refinance for FHA loan, I paid it off. But I didn't get the loan, just to meet the requirements.

I now know more about when to file for divorce than bankruptcy after watching this video lol.

Dave filed bankruptcy. And then wrote a bunch of books and got boat loads of money. Think about how he got wealthy... he has used his failure testimony to make money. Theres nothing wrong with that at all but not everyone can do that. Just a point.

The comments helped me more than the video. Comment section wins again.!

Irs debt is dischargable as long as it's income taxes and it meets 3 basic time rules. Same goes for state income tax.

My friend got student loans discharged in bankruptcy by changing them over to another form of debt; a credit card and person loan

Unless I missed it, I don’t think he said he wishes he never filed bankruptcy himself.

He is spot on talking about keeping all the same debt and only getting rid of a small credit card debt

I just sat through four minutes and learned absolutely nothing

The problem is that trying before you file BK often makes things worse. E.g., you clean out retirement accounts or rob Peter to pay Paul, etc.

Didn’t Ramsey file bankruptcy?

While it isnt what I wanted to hear, it is what I needed to hear.

Somebody please tell Dave there is a Rent-A-Center ad at the beginning of his video. I just want to know what he says. lol.

Wish he would have said WHY it is so bad.

Don’t care about losing the house should I still file for bankruptcy?

That's rich coming from a guy that filed bankruptcy. It's a tool. Use it if you need it.

OMG he's so patronizing

One thing though creditors can still sue you if you do not pay debt that builds. Either way it will end up in court plus the credit score is already ruined. Bankruptcy should not be taken lightly that is true.

Says the guy who filled bankruptcy

me over here thinking about bankruptcy with maybe 5-7k in debt whilst everyone else is upwards of 6figures or more lol. I like his words though, what is the difference between not paying now and not paying after bankruptcy lol logical and true. unless they try to garnish what little i make then im just going to wait 7 years i guess. or until something good comes my way

what happened to me is the housing crisis got me. I had to decline a better job offer because I would be over the income limits for my low income housing. I live in an affluent area with very little rentals and none of them are affordable. SO now I can't pay my bills. I tried to get work on the side off the books, but there really isn't much out there.

Whats the diffeence to your credit score/how it looks on your credit report if you file for Chapt 7 vs not pay a large credit card debt? And any other pros/cons? He's saying if you are not paying your debt then it sounds like makes no difference to continue not paying on it but isn't it just better to do Chapt 7 and get rid of hte debt all together?

My family member owns 80k and cant pay should he file for bankruptcy

Wow thank you so much I was one minute in and I decided bankruptcy is not for me.

Good advice Dave

Divorce and bankruptcy are not the same thing at all. Bad analogy Dave

Dave i thinl you need to take into account PERSONAL MENTALITY, and Emotional and mental maturity. Becaus it DIRECTLT REFLECTS whether or not, it effects someone mentally, and emotionally as much as others. Im speaking from watching closely. My room mate is a oit to have me take him to his hearing tomorrow. Its not effdecting him emotionally But he is mentally mature. Despite his age.

When a family struggling due to an incompetent government files for bankruptcy, they’re discriminated against. When the government/Bankers/Corporations files for bankruptcy, BAILOUTS, BAILOUTS, AND MORE BAILOUTS.

Very persuasive way of putting it. I still think that there is a place for bankruptcy, only as a last resort, just as Dave said. When I was younger, I didn't think it was a big deal to file for bankruptcy, now I know better. Funny how we think differently about things as we age and mature.

So the worst thing about bankruptcy is still having other issues that bankruptcy can't solve like student loans, mortgage, and taxes?

When you should file for bankruptcy: In the event of wage garnishment or foreclosure. That’s similar to what drove Dave to do it. Anything short of that I would avoid it at all costs though.

For the love of god, PLEASE STOP TELLING PEOPLE that they can settle for Pennies on the dollar. This just simply is not true. Trust me!!!!!

Thank You

Dave's Subscriber count is currently 401K

Not in all cases Dave, some have 150K in unsecured debt with annual salary of 100K, I have tried all other options and in my case bankruptcy seems like the best solution and the one that may keep me from getting a divorce!

Thanks Dave

I'm glad she asked!

The "baby steps" guy says, instead of filing for bankruptcy to clear bad debts, just "not pay" and "see what happens" ? Seriously? This guy should be locked up for negligent financial advice.

I have loads of debt from medical bills due to having no insurance. Thats the only thing im really worried about, maybe a few little things like old bank account with overdraft fees and a small loan all together not more than like $300. But im thousands in debt due to all of my medical bills, will bankruptcy clear all this? Young adult here in need of some advice

This coming from the guy that allows you to purchase his debt relief kit from his website with a credit card.

I don’t know if anyone will see this but I’m 21 and getting sued for 50k because of an accident that wasn’t my fault I had insurance but they don’t wanna cover it and I talked to a lawyer he said filing for bankruptcy is a way out I don’t have the money to pay that 50k is it bad or a smart choice ?

I understand what he’s saying if you claim bankruptcy but keep your cars WHATS the point

When America banks system get bailed out.

Income Taxes actually ARE dischargeable, as long as they are over 3 years old, and you have filed over 2 years ago.

Your camera is amazing, what kind do you have?

I’m going to do this. My house is sinking, it needs new roof, gutters, structural beams and I don’t have any way to pay for this other than credit. Then I will file.

Actually some IRS debt can be put into bankruptcy

what if you have 2 kids and a wife, a mortgage, a ton of bills and just lost your job with high debt and no savings

I am 100k in Debt, im a disabled veteran collecting less than 12k a year. Should i File for Bankruptcy.

Because some adults didn't understand having certain tools where a privilege! Not an on going target people device to pretend they have more pull and power than others! Remember before people had cell phones? And people drove around scaring people without these devices! That's why! Think outside the box before making a comment that you already know the answer to!

Dave - How much debt did you have discharged in bankruptcy? Since you've made all your millions, have you gone back to repay that debt you had discharged? If so when and how much? If not, why not?

You don't think the stress od looming debt is the issue and not the bankruptcy itself!?

If I'm currently in a Chapter 13 and I want to relinquish my secured debt, is a Chapter 7 better or to just have a dismissed Chapter 13?

I did understand ANYTHING...NOTHING WAS SAID!!!!

I don't think I have a choice, my daughter had heart surgery a day after she was born which put us 600k in medical debt.

What I thought DR was trying to say is what I have heard before about 10 things that can happen in your life. It’s supposed to go there are 10 really bad financial things and if 3 or more of them happen in a short period of time. You may be filing bankruptcy. Example would be Job Loss+Major Medical Issue+Divorce. Two of three happened to me but luckily I didn’t have the third and file bankruptcy. Probably the worst combo but you get the idea.

If I already have bad credit why not file again my credit score went up when I filled last time

This is an extreme example. I’m pretty sure the bankruptcy referred to on this list is the forced kind... the you just lost your business kind and you’re looking everything.

How did I get a rent-a-center ad on this video?

Can you do a video on your Strawman and is it real to actually wipe debt?

Okay so what are all the other options?

In my opinion i think this is a terrible answer just my opinion

Bankruptcy is not bad if u don’t have job or assets

What about school loans that can be discharged to do severity of childs disability? I have an attorney saying i can and have a very good case.

This is not helpful 🦶🏻

We all die. This Matt Ramsay will never know what it feels like to truly not care and light a cigar with a 100 dollar bill. In life you have to experience everything otherwise you saved for what? To die with some digits in the bank... life is now, spend your money you most likely will want to look back on your life and your experiences. Not your prudent financial decisions.

If trump can do it 4 times and become the president, we shouldn’t be high roaded by people like Dave Ramsey who has filed multiple times. You’re not doomed or a bad person for filing.

IRS debt can be discharged in bankruptcy. This is overall bad advice.

I agree. You should NEVER file for bankruptcy or divorce unless you've tried EVERYTHING in your power to fix it. I question whether those that filed for such did everything they could.

Don’t file for bankruptcy just buy my system. The very stuff he teaches is perfect for filing bankruptcy. I can’t stand this guy.

Way to not answer the question. Dave needs you to stay in debt and buy his books.

this guy works for folks that wants to keep you in debt-bad advice. Go a head an file-get a fresh start

Add trying bring your fn credit score to 700

This video was not helpful

Didn't Dave Ramsey himself, file for bankruptcy???

True!

I make around 23k a year and almost 15k in credit card debt and medical bills. Im considering to file bankrucptcy cause i have no student loans and i only rent out a apartment. Any more thorough advice would be appreciated.

Dave filed bankruptcy

I am working from home to pay off my student loan. my question is is it Ok to work on Sundays? I am seamstress and use my sewing machine. I am Christian and don't want to offend God by working on Sundays. but it really helps me to speed up my work if I work on Sundays. what do you guys think?

He didn't go into the topic at all, smh

I think it is disingenuous not to mention youve dome it yourself. Comments are saying twice.

This is terrible advice. Rich folks file for bankruptcy often.

While I appreciate the principles . This guy is from a different Era. Guarantee if he didn't file for BK he wouldn't be successful today. Boomer Era. I know a few quote rich people that had filed BK more than once. Banks get bailed out, so should we. Businesses do it all the time. Without regard to creditors or investors.

Typical Dave Ramsey, a lot of blabber without a result

If you have BK questions, feel free to ask me. I've done it twice and don't shun it like Dave.

This guy is so evil.

Horrible advice