Dave Ramsey vs. Bankruptcy
Updated: Jun 5
My colleague, Matt Berkus, a bankruptcy attorney in Denver, has written an excellent article discussing Dave Ramsey’s anti-bankruptcy positions (despite his having filed for, and benefited from, a Chapter 7 case).
When my clients ask if they will ever be able to get credit again and buy a home, I often show them a picture of Mr. Ramsey’s current $5,000,000 mansion…
…noting that this is the current home of someone who previously filed for Chapter 7, and purchased after they filed.
A few additional thought about Mr. Ramsey and his Chapter 7 bankruptcy filing from Joe Fulwiler, a bankruptcy attorney in Texas:
* Dave Ramsey was a overleveraged real estate speculator who couldn’t liquidate his assets fast enough when the bank called his loans, leaving him with millions of dollars of debt. Most people who face the possibility of filing for bankruptcy are not overleveraged real estate speculators, but are normal families working to keep food on the table and pay the bills. They might have experienced an income reduction due to the loss of a job, the loss of a spouse’s ability to work, or another life changing event such as divorce.
* Dave Ramsey waited years before filing for bankruptcy. He allowed himself to be sued, harassed, and frustrated. If he had realized the state of his financial situation sooner, and realized that bankruptcy is not defeat, but a tool created to help people, he could have avoid the anguish he endured, most of which was caused by his delay in filing, not by the bankruptcy itself.
* If Dave Ramsey had not filed for bankruptcy, it is very unlikely that he would have enjoyed the success that he has today. It was because he filed bankruptcy that he was able to move past his debt and begin his new life debt free.