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A Bankruptcy Lawyer's Take on Dave Ramsey - YouTube
Channel: Consumer Warrior
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everybody John Skiba here from the
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consumer warrior project and from the
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Arizona consumer law group and in
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today's video I wanted to talk a little
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bit about bankruptcy and Dave Ramsey and
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you know someone who deals with debt and
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people's debt problems all day long I
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often get asked what I think about Dave
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Ramsey and people actually think that
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there's some kind of tension between the
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the Dave Ramsey approach to dealing with
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debt and the way the bankruptcy
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attorneys deal with that and a lot of
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people are surprised to hear I'm a big
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proponent of Dave Ramsey I actually have
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a lot of his books all over my office
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because I think that it is a great way
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to deal with it and I can tell you that
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Dave Ramsey and his company they
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actually used to provide some credit
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counseling classes that went along with
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the bankruptcy process when a person
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files for bankruptcy they have to take
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to credit counseling classes one before
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they file for bankruptcy and one after
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and Dave's company provided the course
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that people completed after they filed
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for bankruptcy that gave some tips and
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strategies on how to stay out of debt
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going forward and kind of a sighted she
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was kind of interesting they wouldn't
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provide the classes prior to bankruptcy
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because they felt that was inconsistent
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with the message that Dave preaches on
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the radio which is to try to avoid
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bankruptcy if you can if it's all
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possible and as part of for being a
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provider of his courses actually once a
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year he had a conference of sorts out in
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Tennessee in Nashville at his
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headquarters where all these bankruptcy
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lawyers they used his courses would come
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in and he would talk to them and give
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training and different ideas on business
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management and it was really cool
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because we got to go back to and see how
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the whole Dave Ramsey headquarters works
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we got to see him do a radio show live
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and he even had a dinner that he held at
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his house Nashville which was really
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cool because I got to go there we're
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having dinner with him and
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remember standing out on his back porch
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just talking today Ramsey about his
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radio show and you know of course was
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being a bunch of bankruptcy attorneys
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there the conversation came up the other
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person you know is he anti bankruptcy
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and I don't believe that he is anti
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bankruptcy and I obviously I don't speak
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for him but his thought was look
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sometimes it is necessary for people to
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file for bankruptcy here's a picture
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that's a me and Dave out of the
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headquarters but you know what his
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thoughts were is look bankruptcy for too
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many people is the first option it's the
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first thing they think about when they
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want to get out of debt when there's
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other ways you can get out of debt
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particularly through like the Financial
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Peace University and some of the
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different you know the debt snowball
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things like that that he is a proponent
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of and I'm in an agreement with that the
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bankruptcy is not a good fit for
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everyone it's not a good fit for a lot
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of people there's a lot of other reasons
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even besides the fact that there's
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programs like Dave Ramsey program the
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Financial Peace University which I've
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taken that class by the way like I said
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it's something where I try to instill a
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lot of those things not only to my own
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life but into helping clients who are
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dealing with debt problems but there are
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certain times when bankruptcy is
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necessary and I think even Dave Ramsey's
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agree with this because a lot of people
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know Dave filed bankruptcy himself when
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he was a young man and had lost his
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business and he related that story to us
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when we were back there in Nashville and
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the story was that you know he had lost
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his company he owed millions of dollars
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and he had done his very best of pay
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everybody back and he actually made
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incredible progress paying back millions
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of dollars but that everything was
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really leveraged and you know Aldi
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secured debts and one of the creditors
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was threatening to repossess some of the
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furniture that they had in their home
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and so he ended up having to file for
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bankruptcy to stop that because once
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somebody filed for bankruptcy it stops
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collections it stops repossession of
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cars or foreclosure of homes or taking
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of furniture or you know any of those
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things so that's why he did it because
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he had to stop it because the creditors
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had sued him they got judgments and now
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they were trying to
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levy on assets and repossess things and
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that is really the situation where I see
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where bankruptcy makes sense for most
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people one of the areas is when there is
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an emergency when there's a foreclosure
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sale that's pending when your car is
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going to get repossessed if your wages
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are being garnished and you can even buy
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groceries because it's making things so
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tight bankruptcy is very powerful then
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because it stops the collections it
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stops the garnishment stops the
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foreclosure sale stops the repossession
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and gives you some breathing time to
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kind of decide what it is that you want
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to do you know you can complete the
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bankruptcy and eliminate the debts maybe
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a chapter 13 bankruptcy where you're
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restructuring things so that you can pay
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less but still pay something towards
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your creditors that's probably the
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number one area where I see where
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bankruptcy is a necessity is if things
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have gotten that far
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second way is if there really is just a
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realistic option for repayment and I see
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this a lot with medical bills people who
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come in have just hundreds of thousands
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of dollars of medical bills I see it
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when there was a business that's
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collapsed where a business had a lot of
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lines of credit and they were personally
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guaranteed and there's just simply no
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way based upon the income level that
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those people have that they are ever
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going to be able to get out of that
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situation in those types of situations
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bankruptcy can make quite a bit of sense
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so definitely a big fan of Dave Ramsey
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Dave Ramsey show listen to it my wife's
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a big fan we've been to Financial Peace
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University but I do think and I think
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Dave would agree that there are
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situations where definitely it is
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necessary it just doesn't need to
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bankruptcy doesn't need to be the first
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step that people take that impair their
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options and I talked about those options
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in my office so I knew with people for
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consultations we discussed bankruptcy
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options but we also go over the non
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bankruptcy options that are out there
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one of which being you know Total Money
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Makeover here with Dave Ramsey so if you
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want to learn more about some of the
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approach that we take to dealing with
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debt and debt problems you can go to
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consumer warrior comm that's where we
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have numerous articles and hundreds of
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video that I've done there's an audio
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podcast and give you some information on
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how to deal with bankruptcy debt
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settlement we even deal with debt
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in lawsuits which impacts a lot of
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families again consumer warrior calm
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thanks for watching
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