$700,000 In Debt and Ready To Declare Bankruptcy!

in the lobby of Ramsey solutions cable Caleb and Molly dropped by hey guys how are you good been better oh what's going on how can I help we are $700,000 in debt what we are farmers from Montana and we disagree about how to handle it I am ready to declare bankruptcy as awful as that would be he has kind of dragged us through several failed businesses and working it out and making payments just sounds kind of like another scheme to me at this point and I'm hesitant to get to dive into that and I'm exhausted and we're kind of hopeless and don't really know what to do break that down for me how much is out on the farm well we lease a farm but we go about four hundred and fifty thousand dollars on equipment mm you know inputs and such okay and what is the other 300 thousand yeah that would be like little I owe my dad for some stuff and then now how much do your dad fifty thousand and then I uh you know for some equipment repairs and some chemical bills from last year Venga bills yep okay and how much is that oh it probably comes up to hundred that's six hundred yeah then there's another roughly hundred thousand dollar lawsuit that we're in over equipment repair that we rented I don't know four or five years ago now what is that lawsuit about some repairs that were done to a machine that we rented and I disagreed with all of them and you rented it and they said you broke the machines so they did the repairs and surgery for them yep okay and so in a sense other than the 50k there with your dad this is all business debt in a sense I mean you've signed personally for it but it's all business debt and you leased the farm okay you're still operating the farm yep okay and so she wants to file bankruptcy what's your plan sell a bunch of equipment and get out of the debt I mean get out as much for the debt as possible and work out settlements with everybody how would you work it out I mean how you gonna make money well I have a truck I do some trucking one time but the bank won't guarantee that we can keep the truck or any vehicles you won't in bankruptcy either right right okay and so you quit farming and drive the truck to pay off the bills and sell off the equipment is your plan mhm is that what you're saying Calum Evie okay all right okay and but a part of the equipment is the truck and what is the truck worth probably only $30,000 those 18-wheeler tractor yeah okay all right is it reliable yeah into shape mm-hmm okay what can you make driving truck oh so variable but anywhere from 80 to 150 thousand here okay I'll get kids yep three you talking about being over the road with that truck yeah I'm usually gone two weeks at a time and only home for a day he wants so long but that's only an offseason when you're not farming right right right you know and what we're talking about here is you're doing that full-time right you'll be going all the time yep okay let's pretend you file bankruptcy and you walked away from everything toss up by the keys clean start fresh done what are you gonna do for living then go get a job at a farm or something like that I suppose mmm how old are you 30 what were the other failed businesses we did custom harvesting primarily custom harvesting yeah we own the combines and Amish and go to Texas and back and cut for farmers and that didn't work nothing and the other business that's about it I guess one other business has no suckers so Molly you were exaggerating when you said certain businesses it feels like several there's been well in the farming and we were in business with his family too for a while and did that go bad yes it's a it's a partnership that sunk okay that was a different business mhm okay well it's the same stuff just okay in partnership so Caleb what I am hearing is that you have attempted to do the farming business the way a lot of people have attempted to with large piles of debt three different times in three different ways mm-hmm have you figured out this any working yeah okay is if you go back in dad I in the farming business again I'm gonna find you and kick your butt because it for three times you got to figure out this ain't working really I mean the combine thing the reason it went downs you had big freaking combine payments the reason the partnership on the business failed is you had big equipment payments and now you got it again mm-hm because you've got in your head the way you grew up that this is the only way to do farming and it's not the only way to do farming because it's not working and your problem is you're not an unusual story I deal with farmers all the time that are dealing with what you're dealing with it's very difficult farming is to start with very hard work unbelievable hard work but on top of that it's very difficult to do it with these big freakin equipment payments it's almost impossible to make it and and yet farmers still you know Doug Ramsey doesn't understand farming no I understand business I understand business and math and farming is a business and math does not get an exception because you are feeding America and we appreciate you feeding America but it doesn't you know patriotic stuff aside the freaking math has to work and that's the problem here huh what will the equipment bring oh I would say roughly 450,000 you think it'll bring enough to pay it all off well not quite no we'd be about a hundred thousand short okay so more like three thing right yeah okay all right and so basically that's going to leave you about three hundred and fifty thousand dollars if you sold off the equipment that you have to settle and clear making a hundred driving truck and feeding three kids okay so I'm guessing you can probably settle most of that not counting your dad for about probably 1020 cents on the dollar it's gonna take some negotiation but I mean you probably settle a hundred thousand dollar vendor bills for twenty five thousand bucks with my gas okay and so if you do that at say twenty five cents on the dollar and you sell off the equipment you know we basically got it's gonna take you about a hundred hundred hundred and some change to get out of debt can you do that making a hundred and twenty yeah but you're not gonna see your family for two years that's what you're giving up or you got to find another career that's different than driving a truck that's gonna make you some more money okay I don't care which one you do this just doesn't sound very fun sounds like a very tough thing to go through so are you guys in a good church yep good okay make sure you're sitting down your pastor and talking about your marriage as soon as you get home and start doing that once every two weeks have a checked out okay because this stuff Sharon and I were right where y'all were it'll destroy your life and let's draw your marriage it's not worth it's just stuff okay I could go either way if I'm you but you both got to be up for whichever way it is Molly I think you're just I think you're tired and your tank is empty and you ain't got much fight left in you and you've lost confidence in his ability to do math and then that some of that's valid all of that's valid actually but if I were in your all shoes the way I look at bankruptcy I look at it like a divorce I try everything first to not do that and so let's try some stuff but it has to have a plan and Caleb for her to go along with that she's gonna have to see a detailed plan and she's gonna have to have like you're gonna have to have a new tattoo right inside your arm that says I don't freakin borrow money for anything ever again the rest of life no matter what my stupid family says that tattoo right there on the inside of your arm you got it because you can't ever because she's done man she's gonna give you you know she's gonna stick with you but she's done with this process of going deeply in debt is that fair Caleb sure is you know so she'll run with you on this you to put some gas back in her tank if she can see that we're gonna give this a hard run and she'll she'll handle the kids while you're on the road a little bit if we got a hard run and you sell off this stuff but only if you never go back that was Sharon's of me we said never again never again then we stayed married we've I killed each other but we stayed married thanks for dropping by guys thank you thanks

Channel: The Dave Ramsey Show

Views: 382,971

Rating: 4.8404841 out of 5

Keywords: Debt, Money, Help, Bankrupt, Bankruptcy, Finances, Farm, Farm Debt, Equipment, Marriage, Dave Ramsey, Budget, Hope, Scared, Broke, Desperate, Stressed, Lawsuit, No Money, Money Problems, Huge Debt, Total Money Makeover, Financial Peace University, Failed Business, Business Debt, Lease, Borrow, Stupid, Cash, Young Adults, Young Married, Family Business, $700, 000 In Debt and Ready To Declare Bankruptcy!

Id: CddhYTP8Kpk

Length: 9min 34sec (574 seconds)

Published: Fri Apr 20 2018