If one were to Google the word “bankruptcy” or “Chapter 13 bankruptcy”, and sometimes “Chapter 7 bankruptcy”, they will find on the first page of results (usually a top ten result) the August 3, 2009 article The Truth About Bankruptcy accredited to Dave Ramsey. I have had the pleasure of reading the article and was taken by his response “I will still talk you out of bankruptcy if given the opportunity” when an individual has determined that they need to file bankruptcy. Apparently Dave Ramsey knows what is best for everyone else.
It would seem that Dave Ramsey possesses a certain level of credibility. However, I am tempted to describe him as a charlatan, swindler or perhaps even a snake oil salesman. Thing is, snake oil has some positive qualities, and at its core Ramsey’s thirteen week course does provide some positive steps in relieving debt, so I won’t take that harsh of a stand against the chap. I will however offer the suggestion that his aversion to bankruptcy as a workable solution is misguided, wrong, pig-headed, self-serving and even harmful to individuals who could benefit from the protections the fine gentlemen in Congress bestowed on the American individual, or resident alien, facing a landslide of creditors or a foreclosure on their home.
Ramsey lashes out against bankruptcy calling it one of the “top five life-altering negative events”. Now I don’t specialize in stress but a quick Google search shows that one of the top five stressors in life (if not the top one) is monetary problems. They are not referring to bankruptcy at all but rather the totality of negative aspects associated with what is perceived as insurmountable debt and the lack of sufficient funds to correct the problem. Money problems can cause you to lose sleep, be a generally agitated fellow, and break down marriages and other personal relationships. Bankruptcy is a potential solution – not an additional weight pulling someone under. Ramsey’s classification of bankruptcy as a specific “top five life-altering negative event” is a fabrication dramatizing his personal feelings towards bankruptcy (not to mention, it further promotes his course).
Now, I am a bankruptcy attorney and a small level of self-interest does drive me. I take great offense when bankruptcy is cast in a negative light because in many cases it is the best option available to people in times of financial crisis (please see the related article penned by my esteemed colleague). I have seen too many clients who have exhausted their retirement funds or refinanced their homes to pay off a portion of their credit card debt only to still be looking up out of a deep pit of financial despair. I have watched too many hard working folks go through the hoops and hurdles of the mortgage loan modification process only to be denied after months of providing the same paperwork over and over and over again, and to add further insult, find their home listed for sheriff’s sale. If these individuals at least investigated bankruptcy as an option they may have found themselves in a much better financial place and on the road to recovery.
As I stated above I am a bankruptcy attorney and I have counseled and guided many individuals successfully through the bankruptcy process. Bankruptcy offers legal protections to the individual not available elsewhere – neither through Mr. Ramsey’s program nor through the dubious “help” of one of many debt settlement companies (again I will refer you to some valuable information provided by Kimberly Coleman).
One of my favorite clichés is the maxim that “one shouldn’t put all of their eggs in one basket.” (Thank you Mr. Cervantes) It’s about options. No two individuals are in the exact same situation and therefore limiting the available options is a disservice, foolish and perhaps even stupid. Mr. Ramsey would have you believe the best course of action is his, and in some specific cases he may be right. But I suspect given all the available facts many would prefer to look at all available avenues, including bankruptcy, to restore their mental health and financial well being.
If you are in the Philadelphia area, including in the counties of Montgomery, Delaware, Bucks and Chester, and you are interested in knowing your options, please contact the lawyers at Coleman & Kempinski, Kimberly Coleman and Ray Kempinski, for a FREE CONSULTATION.