Isn’t Filing for Bankruptcy Easier Than Paying Off Debt?

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[joshuawilliams]

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

[romanblaunt]

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 👍🏽

[Yaya-cltu]

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.

[zenlife]

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.

[jmartelw]

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).

[steelcastle]

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).

[XennialGuy]

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.

[investorfriendlyprobaterea]

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!

[iomis]

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?

[jeremyk]

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!!!!

[jhpt]

I have always appreciated Dave's transparency about what was undoubtedly a painful and humiliating experience.

[darkbee]

Remember folks: individuals taking advantage of capitalism, bad; corporations abusing capitalism, good!

[gloriaalex]

Kinda hilarious that Rachel blanked out on the word "inheritance" while looking right at the Source.

[ien]

From my experience, it is a positive experience. It teaches you to be more responsible and those credit scores jump up back fast.

[JohnnyJolter]

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

[moniqued]

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.

[toughbowtietruck]

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.

[mikeg]

People who are against bankruptcy are rich people who are butthurt. I never did it, but i love the idea!! Free money

[NYNC]

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.

[brantingram]

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 !!