When Should I File Bankruptcy? - Dave Ramsey Rant
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- Опубліковано 16 гру 2017
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A guy that filed for bankruptcy 2 times telling people not to do it. Filing for bankruptcy works which is why he filed twice
😂🤟🏾
The rich do it more then us working folks.
Yep. And I’ve heard people buying homes and cars around a year! Like everything is cleared up. And not everyone repeats the same mistakes. There are some though
@@banginzaza yeah it happened to me and it didnt even take a whole year
He filed once, get your facts straight!
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 am thinking of filing for bankruptcy as well, I owe about 37K of credit cards debt... any advice...
@osmanrayyan consult with a bankruptcy attorney and they will go over options with you and how the process is started.
I just filed at 25. It honestly seems like a good reset when you just can’t manage anymore and have tried everything. They help you build your credit back and give you a class to guide you from making the same mistake again. It will just be on record
What if your home is paid off and you own it? You don't have to reaffirm it correct??
Do you still make payment while you wait for a decision?
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.
Did you file bankruptcy ? How did everything go ? Me and my husband have about 95000 in debt . We are so overwhelmed . We make about 100 thousand a year.
Shantell 48205 25000 in two cars 38000 in credit cards . 20000 to irs which we are on a payment plan for - it’s 300 a month and about 10000 in other loans . We got really stupid .
Shantell 48205 all of the irs debt is from 2011 to 2014. We actually have already retained a lawyer , just a little while longer until we file . We just have to get all of the paperwork he needs together which should only be another week or 2 . I hate that we put ourselves in this situation but life happens . With all the interest I’ve already payed my credit cards I’ve done the math and they have already gotten way over the amount that we put on our cards .We Have a 2 year old and a second baby on the way.
Shantell 48205 there is just no way that we can afford all the debt . I honestly should of filed years ago. Thankfully we aren’t behind on our cars at all. And I’m totally okay with not being able to buy a house for a few years . How long until you file ?
Shantell 48205 I can’t say amen enough to that !! Best of luck to you as well. I am honestly so excited and relieved to be doing this . Ready to live on just cash and to actually have money to do things . I can not wait .
Glad this video was about divorce rather than when to look at filing bankruptcy....
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.
Yup this guy's overly dramatic
@@jeffgoodbar7682 Dave used bankruptcy to get to where he is but doesn't want others to use it
Didn’t Dave file bankruptcy
Exactly. File bankruptcy and Dave loses business
@DIY Tacoma Uhh Yes. But he also recovered from it and is successful now. Speaking from someone who has went bankruptcy twice and still hasn't recovered from it. Until I started to get my tips from Dave Ramsey. Starting as of a month ago. And now have paid off 12000. I just don't know how to get rid of my other 70,000 debt. Auto and Trailer. Ugh
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.
yes--DR reminds me of a preacher.
Brandon Honsalek I agree Dave is a hypocrite. He filed it was OK for him but not anyone else. Bankruptcy is not as devastating as he portrays. A prime example of Do As I Say Not As I Do.
Yeah just get yourself into a pile of debt and then just let someone else pay for it! There’s a reason student loans and car loans aren’t bankruptable because then everyone would just go to college, get a car, and run money up on credit cards and get to keep it all, with no penalties!! There’s never a good reason to declare bankruptcy! And so what if he sounds like a preacher?! The world needs more of them!
@Christophe Valiant exactly I’m in my early twenties and have it from the system not applying my community service hours and paid fees to my driving ticket records therefore having collection agencies trying to take money I don’t have. I was not offered the youth services that was available by judges when I showed up that would have prevented it either. Idk if I should file so they can stop coming after my wages from my part time job.
Nice
If millionaires can several times way can’t we?
Source please
Get it yourself
Millionaires shouldn't, either.
Because they can pay the high interest rate or apr and use money to leverage high end items
They’re probably filing on businesses
I now know more about when to file for divorce than bankruptcy after watching this video lol.
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
how do i do this ?lol
@@elevationsco4061 please reread their comment......again I repeat READ their comment....that is all.
Bad advice Dave
Everyones journey is different
I filed chapter 7
One of the best decision I made
mellow yellow what does that do ? Can you still keep your car ? Does it affect my husband?
@ʑєвяα ѕтяιρєѕ can you please give me more info. I’m interested in filing
@@tanyamartinez8174 can you please give me more info on the process. I’m considering
Did you know Dave Ramsey filed for bankruptcy in 1988? By the time he was 26, he had a net worth of over a million dollars, but it all came crashing down when the bank called in his loans. He was left totally broke and completely broken
@@taneshiawalton6513 do some research and find a good bankruptcy attorney. They will assist you through the process
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.
wait, when you filed BK they took your tax returns? if so, is that something that happens every bK?
@@DonovanPoole I have never heard of that I thought the debt would be not over your head to worry about
45 hours a week isn't much though
Unless I missed it, I don’t think he said he wishes he never filed bankruptcy himself.
What a hypocrite. A supposed financial expert who filed bankruptcy. I’ve lost all respect for this joker.
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.
Altair Ibn-La Ahad it wasn't at the beginning of mine. So I'm pretty sure it's not an endorse video but a random one UA-cam put up.
@@jant4385 .. I agree with what you are saying. That's what I was thinking.
😂😂🤣🤣 hahaha
There totally is it's still there
🤣🤣
My friend got student loans discharged in bankruptcy by changing them over to another form of debt; a credit card and person loan
Genius
Good idea 👍
Do tell!!! What’d your friend switch it to🤔
you can pay student loans off with a credit card?
Irs debt is dischargable as long as it's income taxes and it meets 3 basic time rules. Same goes for state income tax.
Hello, can you explain what is 3 basic time rule? Thank you
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.
Good advice Dave
He is spot on talking about keeping all the same debt and only getting rid of a small credit card debt
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
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.
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.
I absolutely agree with you. We try every option, take money from everywhere to fix it and it still doesn't work in the end. This is when people do not fraud and do the right thing. Case by case scenario just like everything else in life.
@@jennifersmith3010 I guarantee you 99% of fraud slips under the rug. Think about it by the time someone is on the brink of BK there isn't much credit left to borrow anyway, even if they max it out CC companies aren't going to spend tens of thousands on attorney fees on someone who is probably judgment proof. The main ramification is that it gives BK, in general, a bad name for the honest person.
Thanks Dave
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?
Wish he would have said WHY it is so bad.
Randy Rhoads replay and close your eyes..he leads you to the answer
While it isnt what I wanted to hear, it is what I needed to hear.
OMG he's so patronizing
Wow thank you so much I was one minute in and I decided bankruptcy is not for me.
Didn’t Ramsey file bankruptcy?
yeah but yeah but yeah but that's different.
Yes he did... But you better pay your student loans, credit cards, mortgage....
In my case I might file. My x has a company hidden under all types of red tape we couldn’t verify her income she makes double what I make yet we have joint custody of our son and I pay her a bit of child support meanwhile she has two streams of income and only verified her employers income. 8 months of legal fees to get joint custody and I’m still paying child support. Along with the fact that if I make more at work she will take even more forced me in a position where I can’t get ahead of anything working more means I need to keep working more to pay her and my debt. Ask she left me with a giant amount of debt in the separation she kept many things of mine and pretty much bankruptcy will help me greatly. I drive a 27 year old truck paid and need a Transmition and can barely afford to do anything no matter the extra hours I work. I have no family in my state so when I have my son I can’t worn any extra hours to get ahead and can only work 17 hour shifts on my days when I don’t have him but I’m limited on the Amount I can work because the x will come after me for more cash. I am planning on filing for bankruptcy and finally being free. I got rid of my cards long ago but with the interest charged I can’t get ahead of my past mistakes. At least this way I can dig myself out of the gutter.
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?
Don’t care about losing the house should I still file for bankruptcy?
I just sat through four minutes and learned absolutely nothing
I click on these vids just for the comment section TBH
you may have just saved me 4 minutes...
Says the guy who filled bankruptcy
vanessa spence yeah that’s why he’s telling you not to do it.
@@Outlaw653 😂😂😂
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
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.
So what is the best thing to do
Sue you lol for what?? How can you Sue somebody who has no money
Are you still responsible for the debt?
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.
Can you do a video on your Strawman and is it real to actually wipe 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.
They can definitely happen together. I'm glad that you did not experience the thrid!
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
So what has happened since then?
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.
My family member owns 80k and cant pay should he file for bankruptcy
No people only file for bankruptcy in the few hundred grand
Yes
Depends on many circumstances, there is no clear yes or no answer. If the person is no longer to meet his monthly payments or is at the point where he is so overwhelmed by the debt that it is affecting his mental or physical health, then it would be a good idea to speak to a bankruptcy lawyer. Otherwise maybe just developing a good repayment plan and tightening the budget would be better. I was once 95k in debt and paid it all off in a few years had to basically live with bare minimum and essentials only, no eating out, no extra things, it was very difficult, but I managed, not everyone is capable of living like I did for a few years though.
Dave's Subscriber count is currently 401K
Oops 402. Sorry :(
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'm glad she asked!
So the worst thing about bankruptcy is still having other issues that bankruptcy can't solve like student loans, mortgage, and taxes?
All of which is not true
True!
smittyboy007 how can u say true... u didn’t even watch it before u commented
Leedle
What are you talking about? I did watch it.
Your camera is amazing, what kind do you have?
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.😢
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.
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!
If you make 100k there is surely a way you can climb out of 150k in debt man.
150k of what?
When America banks system get bailed out.
Banks get rick. Middle class stay poor and the struggling (as I once was) still struggling
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.
Okay so what are all the other options?
Actually some IRS debt can be put into bankruptcy
The comments helped me more than the video. Comment section wins again.!
I understand what he’s saying if you claim bankruptcy but keep your cars WHATS the point
This coming from the guy that allows you to purchase his debt relief kit from his website with a credit card.
Quoted from the checkout section of his website:
"We recognize that the Visa and MasterCard monopoly on the debit card industries prohibits merchants from only taking debit cards. For that reason, it’s impossible for us to ensure that every order complies with our debit card policy. Our policy is no credit cards. Please honor that. And let us help you kick debt out of your life once and for all!"
Also I'm not sure what this has to do with bankruptcy.
LOL
GreeleyCPS it’s because they still take Credit Cards. Like I previously stated. It’s just paying a dude to help you manage your money by shoving mindsets down your throat until you throw out it all.
The bankruptcy part plays in because many people will not abide by the debit card only and only rack up more debt. Which leads them to eventually......
@@jazfromhouston I'm pretty sure it's all but impossible to accept online payments without somehow allowing credit cards. Even if the site didn't take cards directly and just allowed, for example, Google Pay or PayPal, there's no way of knowing what payment method you actually have linked to those accounts. So, the site can really only ask that customers please not use a credit card, which it does, and hopefully they'll comply. If they decide to ignore that, that's entirely on them, and they have only themselves to blame if they do keep using credit cards and go bankrupt as a result.
😂😂😂
How did I get a rent-a-center ad on this video?
barnettzack its ironic isnt it?!
They know some of Daves audience.
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.
Divorce and bankruptcy are not the same thing at all. Bad analogy Dave
You don't think the stress od looming debt is the issue and not the bankruptcy itself!?
If I already have bad credit why not file again my credit score went up when I filled last time
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
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?
Is that why he has a cash only policy
Income Taxes actually ARE dischargeable, as long as they are over 3 years old, and you have filed over 2 years ago.
That's rich coming from a guy that filed bankruptcy. It's a tool. Use it if you need it.
I did understand ANYTHING...NOTHING WAS SAID!!!!
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.
which the families pay for these bailouts
A business or bank going bankrupt to provide value to our economy is different than a person going bankrupt from reckless spending. That’s why.
@@handleyobusiness , No, so the goberment printing money isn’t reckless?
I am 100k in Debt, im a disabled veteran collecting less than 12k a year.
Should i File for Bankruptcy.
Yes !! That's a no brainier. And move to Thailand, or the Philippines . Maybe even Colombia.That $12k a year, believe it or not, will allow you to live a modest life. Just manage your money right
Add trying bring your fn credit score to 700
This is not helpful 🦶🏻
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.
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.
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.
I had 7 thousand on credit cards on 2007 by 2013 was 10 thousand
I went online and get credit card debt relief and finish my debt in 27 months, Just making 2 payments a month
Love & Peace what company?
@@kikataye6293 Family Credit Management seems like a good one..
Robert Williams Thank you!
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!
Bankruptcy is not bad if u don’t have job or assets
IRS debt can be discharged in bankruptcy. This is overall bad advice.
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?
Olga Guevara is this a real question?
yes, work on sundays if it helps you get out of debt
Lol
Do you enjoy sewing? Its not work if you enjoy it
I go to church and it is told that people should not work on Sundays....if they can..since I work from home I can stay away from my sewing machine on Sundays.
In my opinion i think this is a terrible answer just my opinion
Didn't Dave Ramsey himself, file for bankruptcy???
Bankruptcy and divorce is two totally different things. Bankruptcy; you're dealing with your own issues. Even if you're a couple you two are doing it together. Divorce is robbery. Woman strips the man. One way is going negative to break even(bankruptcy). The other is vice versa(divorce). You're wrong this time Dave. 😂😂😂
Dave filed bankruptcy
If you have BK questions, feel free to ask me. I've done it twice and don't shun it like Dave.
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.
chris gast I think the same thing.
I'd say for a lot of people it's out of their power to change their income overnight and make more money. Really depends on a lot of different factors.
@@MochaZilla overnight? It takes time to consider and use all possible solutions.
He didn't go into the topic at all, smh
This is a bad take from Dave. Remember the old saying that When somebody tells you to do something think about if they serve a benefit from it or not. Dave does not benefit from Telling people to file bankruptcy. In fact, it goes against his whole business model.
this guy works for folks that wants to keep you in debt-bad advice. Go a head an file-get a fresh start
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.
I think it is disingenuous not to mention youve dome it yourself.
Comments are saying twice.
Typical Dave Ramsey, a lot of blabber without a result
The dude is a joke. Telling you not to do what he did.
No credibility.
👁️👁️
This video was not helpful
This guy is so evil.
When should you file for bankrupcy? NEVER!
Thanks Dave