Did Dave Ramsey fail to plan his own bankruptcy?

Filing Bankruptcy is the worst thing you can ever do it will ruin your life and it will ruin your credit and you will lose everything. However, if you buy my course you can prevent this from happening. This is something Dave Ramsey would say on his TV or radio show. Does this sound like a person that has your absolute best interest in mind by scaring you and urging you to spend your money on his programs to help you pay down debt? If he was serious he would only accept money orders or personal checks for his course and not accept credit cards. Dave Ramsey filed bankruptcy and should have a course about the pitfalls of filing bankruptcy and how to avoid the pitfalls if you are going to file. However, a good attorney will help you avoid those pitfalls.

Prior to searching for your Michigan bankruptcy lawyer or attorney you have to do your own research about what it means to file bankruptcy in Michigan or any other state. If you are not prepared then you will have a difficult time filing bankruptcy.  The old saying is those who fail to plan essentially plan to fail. If you educate yourself about bankruptcy and the possibilities, then filing bankruptcy will not be difficult and the only thing that will be hurt is your pride, wallet and credit in that order.

Fortunately, as soon as you discharge your debt people will be lining up to give you credit. Therefore, you can begin to quickly rebuild your credit while paying outrageous interest rates with terrible terms because you filed bankruptcy. Think long term and not the consequences of the short term. If you have over 30K in credit card debt it will take you a lifetime to pay off unless you receive significant raises or you are able to figure out a way to pay off the debt without occurring new debt (example, HELOC)

Dave’s solution about how to get out of debt.

David Ramsey advocates getting out of debt by getting second jobs and eating pork and beans and living a life that reminds you of someone living in poverty. This is fine and dandy if you are single. However, how responsible is it for the person that is taking care of kids and a family? Does he advocate not being there to teach and raise your kids? If you are at work and not with your kids then someone else is raising your kids. It is better to swallow your pride and file bankruptcy than it is to be a slave to debt for decades trying to repay off the debt. Dave’s scare tactics about his experience with bankruptcy are his own experience and not the absolute truth when it comes to bankruptcy Thousands of people file bankruptcy without any problems and go on to learn from their mistakes while being fiscally responsible. I wonder what Sharon Ramsey would have to say about him working two jobs and not being around to raise kids if that was his choice?

If you are a Christian you should not file bankruptcy?

If you are a Christian in severe debt credit card or not, then you should look to your bible for your guidance and then to your pastor for verification. You should begin your quest with Deuteronomy 15:1-9

1 “At the end of every seven years you shall grant a release. 2 And this is the manner of the release: every creditor shall release what he has lent to his neighbor; he shall not exact it of his neighbor, his brother, because the LORD’s release has been proclaimed. 3 Of a foreigner you may exact it; but whatever of yours is with your brother your hand shall release. 4 But there will be no poor among you (for the LORD will bless you in the land which the LORD your God gives you for an inheritance to possess)

I truly believe as a child of god he has allowed the laws of our land to continue to exist to help us. Therefore, using the law to file for bankruptcy allows his children to get another start and that new start should include an increase to the offering plate.

Dave must have a decent product if so many people are listening to him?

I only disagree with Dave about not filing bankruptcy. I think his methods to pay off debt are sound and his process of saving for retirement, paying off your home and saving for kids colleges are excellent. However, working years to pay off debt could hurt and discourage you. It is better to file bankruptcy and then look into his courses about managing your money and saving for retirement and executing his advice. I often sit in disgust as he projects his painful bankruptcy on other people when it is not necessary and could really hurt the person in the long run.

What are some of his programs?

Dave’s 7 baby steps

1)      $1,000 to start and emergency fund

2)      Pay off all debt using the snowball effect

3)      3-6 months of expenses in savings

4)      Invest 15% of household income into ROTH IRA’s pre-tax retirement

5)      A college fund for children

6)      Pay off home early

7)      Build wealth and give

Dave also has the financial peace university where you actually take a class for about $100.00. This is a series of 13 classes where you explore all about the finances and how it affects you.

Planning & researching bankruptcy

I suspect Dave received all is education about bankruptcy from the school of hard knocks by jumping in blind and trying to swim in a storm. He didn’t pre plan bankruptcy If you are going on any kind of trip you make plans and this is no exception when it comes to filing bankruptcy.  You have to do most of your research before you ever walk into a bankruptcy attorney’s office. If you expect to walk into a lawyer’s office for a free consult and learn everything you want to know then you are grossly mistaken; they are providing their time for free and will give you a quick overview of bankruptcy and if you want to know more then you will have to pay. To start out, go online and read what a chapter 7 bankruptcy is and what a chapter 13 bankruptcy is. They you need to figure out what is the median income are for your state for a family of your size. This helps give you an idea of where you stand if you are above the median you could be put into a chapter 13 bankruptcies and have to pay money back. If you are below the median then you might qualify for Chapter 7 bankruptcy and still be able to keep your cars and home.

You should look for an online “means test” to get an idea of where you stand. If you don’t’ know what a means test is you should read about it.  You need to find people to talk to about bankruptcy. It is difficult to talk about bankruptcy because people are proud and don’t want admit they filed bankruptcy. You should find an online bankruptcy forum and begin reading what people’s experiences are and what they are saying. You can ask all kinds of questions at these forums and read their answers from people that have been there and done it and you get to hear their opinion on your case.

Lastly, you need to find three bankruptcy lawyers in your area and schedule free consultations and meet with them. If you have spent time on the internet reading and spent time in the forums reading and posting questions you should have a basic understanding of the challenges you may face if you have to face any challenges. You should know after your interaction in the forums. You are now in the position to meet with these bankruptcy attorneys and get the most out of your free consultations. The attorney that can best answer your questions and concerns and explains what he or she can do and will probably be your best pick to represent you and do your bankruptcy paper work. One last thing, you are responsible for the paperwork. Make sure all the figures are correct and your attorneys’ legal aid did not make any mistakes.