Dave Ramsey
👤 SpeakerAppearances Over Time
Podcast Appearances
How long are you married?
Oh, baby.
I'm sorry.
A lot going on with you.
A lot of pain.
How much debt do you have, Margie?
Your debt, not counting the mortgage.
What do you have?
Yeah, that's a lot.
And what do you make?
And how much equity will you get from the sale of the home?
Well, bankruptcy is not going to work for you because when you go to file, there's two types of consumer bankruptcy.
There's Chapter 7 and Chapter 13.
Chapter 7 is the clean slate where the student loans are not bankruptable, but the credit cards get zero.
And in order to file a Chapter 7, you have to pass what they call a means test, meaning they look at your income and any assets that you have.
And when they see you have $50,000 and make $87,000 a year, you're not going to pass the means test.
So you're going to be forced into a payment plan in Chapter 13, which is five years, 60 months of paying payments on the credit cards.