Alternatives To Filing Bankruptcy
As you can see, bankruptcys no walk in the park, and it could take months or years before you feel any relief. And you may even go through the whole filing process and not even qualify for bankruptcy.
But there are ways to get debt off your back without filing for bankruptcy. The first and most important thing you should do is take care of your Four Walls : food, utilities, shelter and transportation. Its much easier to fight your way out of debt when youve got dinner on the table and gas in the tank. Then you want to get intense about upping your income with extra hours or side jobs. Youd be surprised how much delivering pizzas can help you each month!
Its also time to get rid of your stuff. If you dont sell your things now, youll either be forced to sell them in a bankruptcy or youll have to reaffirm the debt to keep them. Anything thats not nailed down is up for grabs. And never underestimate the power of a budget. Taking the time to make a plan for your money can save you some serious cash and help you throw more money at your debt.
About the author
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.
Gather And Organize Your Documents
The first thing you need to do is figure out where you stand with your finances. Your money situation is going to be center stage throughout the whole bankruptcy process, so if there were ever a time to be organized, its now. Here are some of the documents youll need to gather for your case:
List of Your Debts
- Your credit report
- Medical bills
- Records of any personal loans, car loans or tax debts
- Proof that you owe anyone money
List of Your Income
- Tax returns for the past two years
- Pay stubs for the past six months or longer
- Current investment and retirement account statements
- Bank account statements for the past six months or longer
- Proof that anyone owes you money
List of Your Assets
- Real estate documents and mortgage statements
- Vehicle registration and information
- Value of property
- Property tax exemptions
- Receipts or invoices for any major purchases you made in the last year
- Any documented communication youve had with your creditors
- Insurance policies
- Any previous lawsuits you were involved in
A bankruptcy lawyer will be able to tell you more about the exact documents youll need for your specific situation. But if its got to do with your debts, income or assets, go ahead and grab it. And once youve gathered your records and made copies, put them in a special bankruptcy file so you can get to them easily.
He Ignores Warnings And Overshoots
Trump was not aware of when to stop in Atlantic City, which led him into serious trouble. He bought the Plaza and Castle, his first two casinos. As Atlantic City casinos grew, profit margins plummeted, massive, and the market became saturated.
Experts warned Trump that he was a considerable over spender when he made his purchases.$820 million of debt. In the late 1980s, the Taj Mahal was built. Trump ignored them and focused on his optimistic assumptions.
After 16 months of the grand opening, the casino was experiencing cash flow problems and declared bankruptcy in 1991. Trump might have been content with his first two casinos and not had to file for bankruptcy in his entire career.
Trumps fear-mongering, slander and other unregulated excesses as president have been his most unregulated. Trump could have used the support of the working-class voters, libertarian businesspeople and others to win by adopting pragmatic policies that make him appear like a problem-solver.
Instead, Trump has relentlessly bullied his critics and blamed immigrants and civil-rights activists for getting in his way. Trump refused to take aggressive measures to stop the coronavirus spread, despite being advised by public-health experts. Instead, he tried to convince the public that everything was fine.
Trumps coalition now seems to be shrinking rather than expanding, as his support among women, seniors, and other key voting blocs crumble.
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When Zero Is The Hardest Number
You can follow your progress literally, by purchasing color-coded wallets into which the observant Ramseyan places that months precisely allotted cash. If you prefer to run your system out of your checking account, Ramsey offers budgeting software for $99 per year.
However, competitors offer apps and budgeting software that accomplish much the same thing, even if the nomenclature is slightly different. Envelopes instead of wallets, for instance.
Suppose, however, you simply cannot get to zero. Ramsey has some thoughts on that, often expressed on his daily three-hour radio show.
Some seem reasonable: Sell a too-expensive vehicle, because it owns you, and get a cheap, reliable used car or truck to get to work. Others are breathtakingly radical: If your house payment is the budget-breaker, stop cutting the check for the mortgage.
Were not even giving any of it to the house payment, Ramsey told caller Suzette from Michigan, whose husband recently lost his job. You can get five months behind on your house payment before they foreclose. I dont want you to, but if I have to choose between losing the house and feeding the kids, Ill feed the kids.
Ramsey recommends many of the usual treatments in circumstances such as Suzettes: Jobs must be found. Two or three if need be. Skills must be utilized to maximize income. All frivolities must be cut out.
Famous People Who Have Filed For Bankruptcy
Bankruptcy is something we have all heard about. Maybe we even know someone who has had to go down that road.
For some, their finances have gotten so bad that they wonder if bankruptcy is the only option left. As you consider that option, there is probably shame and fear and a huge weight on you that you have allowed it to get this bad.
You are right: bankruptcy is a last resort option and should only be taken with the determination that it is never going to happen again. You have to commit to change, no debt and even counseling, if you really want it to get fixed. It took a lot of work to get into bankruptcy and will take a lot to get out of it.
But the shame has to stop. The guilt isnt going to help you starting over, it will just keep you in the same mindset that got you trapped in the first place.
Did you know that there are a lot of famous people who have declared bankruptcy at one point or another?
Lets take a look at some celebrities who had to start over:
Kim Basinger – Oscar winner and ex-wife of Alec Baldwin, Kim Basinger was forced into bankruptcy after a breach of contract lawsuit. She declared $8 million in her bankruptcy filing and was able to settle 4 years later and continue on with her acting career.
These twenty celebrities are just a few of the examples of people who have had to go through bankruptcy court. The range of debt is extreme to much more extreme.
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What Documents Do You Need To File For Bankruptcy
Theres a heck of a lot of paperwork and forms and documents involved in bankruptcy, but lets talk about what you need to gather up at the start:
- Tax returns for the past two years or four years
- Income documents
- Mortgage information
- Vehicle information
- Retirement information
- Other documentation showing any other debts or expenses, like alimony or child support
Yes, thats a lot. Bankruptcy is not an easy out! Also, your particular state or court system may require more. Get ready to do a lot of hunting and have a lot of patience here.
Why Do Bankruptcy Lawyers Hate Dave Ramsey
Hate may be a strong word, and it almost always is, so lets change it to dislike or disagree with. If you do not know who Dave Ramsey is, you might not be interested in this post, but you can read his biography here. In short, he is a financial planning guru who writes books and materials and conducts seminars on how to get out of debt. There is nothing new or novel about his teachings, as it is based on cutting the budget and starting to knock out debts one by one. I could explain it further, but Dave has a podcast and if you listen for 15-20 minutes you will probably get the picture.
Back to the question why do Bankruptcy lawyers dislike Dave Ramsey. Simple because he is anti-bankruptcy. Very anti-bankruptcy. His favorite term is rice and bean, beans and rice and he applies it to groceries as well as houses, vehicles, entertainment and everything else. It means to spend the bare minimum on absolute necessities and using all available funds to pay down debt. That means a 12 year old car that runs well. Selling a house that is more than you need and can afford and renting instead. You get the picture. Here are the usual major objections to Ramseys programs in general :
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How Can I Avoid Paying Back Student Loans
You can avoid paying more than you owe by changing your payments to direct debit in the final year of your repayments. Keep your contact details up to date so SLC can let you know how to set this up. If you have paid too much the Student Loans Company will try to: contact you to tell you how to get a refund.
Look At Options To Bankruptcy
Try your best to pay off your debt before filing bankruptcy. Get on a bare-bones budget. Negotiate for manageable terms or lower interest rates with creditors. Some creditors will even reduce principal balances rather than settle for nothing, which is what they would likely receive if you file bankruptcy. Move to a smaller residence with a lower cost. Take on an extra job or drive Uber to pay the bills. Did you know Bankruptcy lawyer Hollis Joslin drove Uber through law school and while starting his practice! Theres no shame in doing the work you need to do to get your finances in order. If you dont have any luck getting a better deal with creditors, call bankruptcy attorney, Hollis Joslin. Hollis does more than bankruptcy, he also negotiates with creditors and he can often get a better result than you may get on your own. 602-354-3890.
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Which Type Of Bankruptcy Should I File
Chapter 7 and Chapter 13 are the most common types of bankruptcies for individuals. In a Chapter 7, most of what you own is sold to pay back what you owe to creditors. The only way to guarantee that you get to keep your house, car or other assets is to reaffirm the debtwhich means you agree to keep making payments on them. Most, if not all, of your unsecured debt is cleared. But before you can file for Chapter 7, the court first has to decide if your income is too low to pay back your debt . And a Chapter 7 bankruptcy usually takes a couple of months from start to finish.
With a Chapter 13 bankruptcy, you get to keep your stuff, but you also get put on a super tight budget and a court-approved plan to pay back some or all of your debt. The whole process takes about three to five years, so dont count on your debts being erased right away. Plus, get ready for your whole life to be on display while the court figures out your budget and your pay-back plan.
But no matter what type of bankruptcy youre looking at, you can expect:
- Expensive filing and lawyer fees
- A mark on your credit report/public record for seven to 10 years
- Trouble qualifying for a mortgage in the future
Time Limits Apply To Discharges Not Bankruptcy Filings
Bankruptcy law doesnt set a minimum period that you must wait before filing for bankruptcy a second time. However, theres a catch. If you file too soon after wiping out debt in a previous case, you wont be eligible for another debt discharge .
Although there are times that it makes sense to file for bankruptcy even though you wont receive a discharge, these situations are rare . Because a bankruptcy filed too soon will end up being a waste of time and money in most cases, its essential to know how to time your bankruptcy filing.
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How Did Ramsey Make His Fortune
Ramsey said in a documentary he had “all sorts” of small business ventures, after the lawn care experience, including selling leather bracelets, while in high school. He’d stamp peoples’ names on them and sell them in the hallways.
When he graduated from high school at 18 years old, Ramsey sat for and passed his real estate license exam. His parents owned a real estate company, so he was selling real estate while he was in college and took his license with him to the University of Tennessee at Knoxville, where he worked for a real estate agent for 40-60 hours a week while going through college.
Ramsey graduated from the University of Tennessee at Knoxville with a degree in finance and real estate, “basically, broke,” he said in the documentary, “but not deeply in debt,” because he’d been working.
After selling some real estate for a builder, he started buying and selling real estate in his very early 20s, just a couple of years after graduating and getting married. It helped that his family had some connections with bankers that would help finance his projects.
“They started loaning me money, and I…got rich,” he explains.
Ramsey Investments Inc. built a real estate portfolio worth more than $4 million by 1986, with $3.3 million in debt, giving him a personal net worth at the time of about $1 million. At 25 or 26 years old, Ramsey was making $250,000 a year.
On Sept. 22, 1988, the plug was pulled on Ramsey Investments, by the banks from which he’d borrowed millions.
S To Avoid Bankruptcy
6 Minute Read | September 24, 2021
Nobody thinks filing for bankruptcy is a great idea. Even quality bankruptcy attorneys will tell you its a last resort. The fear, the shame, the guiltit turns your world upside down.
If youre considering bankruptcy right now, here are a few things you should know: First, you are not a bad person for being in this position. Second, bankruptcy is not an easy outso avoid it if you can . And finally, you will get through this. Seriously. Thats why we want to start off by sharing Dave Ramseys own bankruptcy story.
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Donald Trump Is The King Of Bankruptcy Filings Destroying Many Lives Along The Way
Donald Trump spewing his birther-crap again just for attention, is seriously defensive when asked about his bankruptcies over the past two decades. Trumps Taj Mahal Hotel was built by Trump selling bonds to raise over 800 million dollars, then declaring bankruptcy which turned the bonds into junk-bonds. For all of Trumps hyperboles about his riches, if you and I did what he has done we would be imprisoned for life years ago!
For legendary tycoons, Donald Trump tops the list, but how many times has Donald Trump filed for bankruptcy? The 90s recession wasnt picky about who it affected. Donald Trump felt the pinch as well. His decision to use high interest bonds to finance the assembly of the Taj Mahal casino caused life to get very stressful for the tycoon.
In 1991, unable to pay a $3.5 billion loan, he declared business bankruptcy. He also came close to filing personal ruin. At the time, his personal debt was estimated to be around $900 million. Due to the bankruptcy, banks and bondholders lost millions. They came to a compromise with Donald Trump. The banks gave him lower interest rates and a longer time frame to repay the debt and Donald Trump gave the investors half the ownership of the Taj Mahal. In mere months the casino was back in business.
Posted on: Apr. 23, 2010
No Personal Involvement!
Dave Ramsey Hates Bankruptcy But Dont Listen To Him
If youve found yourself in need of financial help, and have searched the internet for information on financial matters, you have undoubtedly come across Dave Ramseys website and his financial management products designed to help people get out of debt and manage their finances. I used to be a big fan of Mr. Ramsey, and most of the information you find on his website is useful. However, his stubborn disdain for bankruptcy is illogical and borders on being deceptive.
I would like to point out, before I get started on why Dave Ramsey is wrong about bankruptcy, that I am in fact a bankruptcy attorney. I meet with people on a daily basis that have run out of options for paying down their debt. They are often in the process of being sued, or having the family home foreclosed, and they live under daily harassment from creditors. These people need relief now! At the same time, I meet with people who only have $10,000 of debt, and simply need to manage their finances appropriately to pay down their debts. I do not sell bankruptcy to people, especially those that dont need it. I merely use the appropriate tool when necessary, and there are some situations where bankruptcy is the right tool.
Here is why I think you should disregard Dave Ramseys advice on bankruptcy.
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- Cant figure out whats going on with your case?
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