The big thing he asks before telling people to file (in my listening experience) is whether or not it will actually change their life. Are they making enough to live without debt? Are they committed to staying out of debt from now on? Is there nothing that indicates their income could improve significantly in the near future so they COULD pay off the debt rather than file?Ericstac wrote:Even the infamous Dave Ramsey filed in his past. I started listening to Dave nearly 15 years ago and he is a brilliant man and I feel with the few dollars a month extra that is all that's able to repay a very large amount he would tell you to file.
If they're going to file and then turn around and continue to live a lifestyle of excess and rack up more debt, then their problem is more than just their current debt. If they don't have enough income to live on beans and rice without debt, then they need to figure out a way to fix that because otherwise they'll find themselves right back where they started. And if it's just a question of finding a better job or taking a second job (or cutting back the lifestyle to beans and rice) to earn enough money to pay off the debt, then he always advocates that first.
If it's legitimately a case where they can and will live debt-free but they just can't get on their feet until the current debt -- which they can never pay -- is off their shoulders, THEN he advocates bankruptcy. But he makes it pretty clear that it's a last resort.
Also, I'm pretty sure that when Dave got back on his feet, he did go back and pay all the debts that were absolved by bankruptcy, not because he had to but because he felt it was what he needed to do.
Not trying to correct what I quoted, but to add information and context.