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That's what all the research says.
All right let's go to Albert in Orlando hey Albert welcome to the Dave Ramsey show.
-- -- thanks statement called the make sure how can I help well I heard it while back that you could go.
Just about just talk just about anybody -- -- bankruptcy.
And that was one of the things that really -- I -- and I wanted to ask you if we were part of that.
Group of people like it get caught that in any way or if we just -- no my wife and I.
Com we basically took some real bad real estate -- by a while back.
On -- while we were but pantry relocating.
And we lost our home that we had before.
Which was 273000.
We lost that home.
Our current home -- 250000.
On and it ended and that its current we have we are trying to.
Try and that they -- -- trying to get at the situation we started a small business that failed unfortunately started -- most of that you your credit.
We ended -- -- really be good credit card debt.
And the only real small that we have a -- quality about 6700 dollars.
So 67 under under cartoon and fifty on your house and how much and credit card debt.
Credit card -- we're at about 85000.
And the business failed.
But it has failed we had to shut it down and so -- what do you do are you back to work somewhere.
Absolutely and so what's your household income our household income and roughly 3400 a month they called.
Well when our second talk someone out of bankruptcy.
I don't know the context in which has said that but.
The thing I found about counseling folks is.
Majority of the time that someone's looking at what they think it's a bankruptcy there there -- a little too ready to show.
And I don't know if we necessarily some of the calls we take here on the air -- my radio show even if it completely keep somebody from filing bankruptcy.
But it might delay it and let's see if something else can happen.
Because I just as fast as bad things happen sometimes good things happen.
And you never know.
And so until your forged and you have absolutely no place to go and -- -- -- in the corner.
And have a gun to your head and then you may have to file bankruptcy.
But it's oftentimes that.
-- you're just scared and you can't see a way out today.
The cause of people who file bankruptcy does that do you see the difference.
And that that's what I mean and so sometimes when we get folks to delay.
A bankruptcy their income comes up.
They get some money from another source sometimes something enters -- like they figure out a way to sell something that got that they couldn't before when they settle with some of their creditors.
And they're able to work their way through it by delaying it.
And other times that he you know everybody and his brother sues them and starts taking everything in -- they're forced into it and they don't -- choices and so I'm not gonna.
Say that I've got some kind of magic one that keeps people from bound by filing bankruptcy but it's a horrible thing to go through and -- -- do everything you can to avoid a first strike.
That's all I was saying so we've got a 5000 dollars in credit card -- 6700 dollars on a car and what is your homework that you -- to fifth deal.
-- -- Probably -- -- 180.
-- actually you're upside down in that.
Aren't what's the car worth.
-- worry about it.
-- -- got a little bit of equity in that.
You're upside down on the house.
An 85000 dollars in the hole and you're making 3400 dollars before you started this business years ago -- and come back Clinton.
-- -- -- -- Anywhere between five and 6000 volatile month.
So you're accustomed to making almost watch this.
And -- the gravitational pull of your life will lead you -- back towards making what you're used to making.
Right now you're under employed would that be a fair statement.
In that that would be correct the economy kind of taken a poll on on my employer.
Right and so you've got the ability in your -- -- to go back to a bigger income say year or two from now.
-- actually been cut.
That's what generally happens to people unless they do some to sabotage -- life because they get so beat up.
And so that's gonna be the direction so.
What would be wrong -- As an example it's in the filing bankruptcy just not paying the credit cards for awhile.
-- we we did that we were actually -- I wanna -- yeah.
-- -- -- -- They Sergio did they get a judgment it sure that they do anything with the judgment.
Not not that I don't get content such as laying there.
So so far your life has not been affected except for credits damaged.
If you -- -- well -- I would just say let's pretend that a year from now the cars paid off.
And you start to build up a little bit of cash.
And then you start calling some of these credit card accounts the smallest ones and try to settle with them.
Gosh if you could settle this for fifty cents on the dollar that -- 42000 dollars how fast pentagon -- 70000 dollars a year pay off.
Fifty 40000 dollar for the death.
So and that's really what you're facing.
And so now in the meantime is it possible one of the big credit -- one of the 20000 dollar -- or something.
Sues you -- -- tarnishing your wages and takes a lien on your bank account and forces you into considering a bankruptcy for real yeah I can happen.
But hadn't happened yet.
So today you're kind of one of those people that will be filing based on what might happen to you.
Not based on what has happened.
That you see what I'm saying.
Right so I.
-- -- -- -- -- -- More than anything was once once we have had so the other -- -- thought that was it when we basically started marching toward bankruptcy.
You know we'll look kind of alone was that FHA VA or conventional.
It was a conventional -- -- have they come to you for any deficit yet.
You know and they may never but if they do then you can work on settling with them if they won't settle -- you can't work out something.
Or your job and increase enough and they -- you for a hundred grand.
They may -- -- bankruptcy -- What had happened yet.
OK so what we're doing is cleaning off future worries.
With -- bankruptcy filing right now instead I wouldn't file bankruptcy personally.
Until those future worries become a reality.
And in the meantime you may get your income way up you may be able to walk through these things to settle a bunch of -- And actually turn this thing around and make it I don't know if you make it or not.
You got -- got a lot stacked against you.
But if I -- -- modified it and this out of bankruptcy -- though that I did everything I could to not have to file.
A follow this part of like a possibly fight it.
And just but but you know the enemy might come over here to our town.
With their army is is not a reason to throw up to surrender flag.
Let's just kind of see if they march by for -- answers to.
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