Short-Term Pain, Long-Term Peace

Dave Ramsey (0:04)

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Normal is broken, common sense is weird. So we're here to help you transform your life. From the Ramsey Network and the FAIRWINDS Credit Union Studio, this is The Ramsey Show. I'm Dave Ramsey, Jade Warshaw, Ramsey Personality, number one bestselling author is my co-host today. Daisy is in Austin, Texas. Hi Daisy, how are you?

SPEAKER_2 (0:37)

Good, good.

Dave Ramsey (0:38)

Good, what's up?

SPEAKER_3 (0:40)

So, kind of nervous. So I'm just calling, I'm gonna just read out the question that I have right here. So, my husband and I are over one with financial, financially. We're having mortgage, vehicle payment, credit card debt, and the biggest part is the large SBA loan.

They send it to Treasury. We're considering bankruptcy and have also talked to some attorneys. They suggested bankruptcy due chapter seven, but we just wanted to see what is our best option, what is our best choice we could do first.

Dave Ramsey (1:15)

Well, asking a bankruptcy attorney if you're bankrupt is like asking a dog if it's hungry.

100% of the time, the answer is yes. Okay, so let's start with that pre-supposition. And so you have a business that failed?

SPEAKER_3 (1:32)

Yes. So the business is under my name.

And then we like switched it to my husband's. And after that, like, it's just not going right with the business. So it's really hard for us to pay it off.

Dave Ramsey (1:50)

What did you borrow? Has it been closed? Is it closed?

SPEAKER_3 (1:54)

The business that was under my name, yes, is closed now that my husband-

Dave Ramsey (1:57)

That's what the SBA loan was for?

SPEAKER_3 (1:59)

Yes, that's for the SBA loan, correct.

Dave Ramsey (2:01)

How much do you owe on the SBA loan?

SPEAKER_3 (2:03)

$178,000.

Dave Ramsey (2:06)

And do they have a lien on your home, I assume?

SPEAKER_3 (2:09)

No, no, because, I don't know, like, the attorney that I talked to, they said that it's pretty much just considered kind of like a personal loan, because I was not an LLC or corporation. Oh.

Dave Ramsey (2:22)

Yeah, but they usually take a second mortgage position on your house. You're sure they don't have a lien on your home?

SPEAKER_3 (2:27)

No, no, because at that time, we did not have a home we were renting. Okay.

Jade Warshaw (2:33)

And you were able to get a mortgage after the fact? How much do you have to pay every month on this SBA loan?

SPEAKER_3 (2:39)

We were paying $584 each month for 30 years, but like I said, we weren't able to pay it off, so we stopped and it's in Treasury now.

Dave Ramsey (2:49)

Yeah, what kind of business was this?

SPEAKER_3 (2:53)

It's like calling Stan Gravel and End Dump Truck. We have two right now that are right now working, but like I said, the money fluctuates. Sometimes there's work, sometimes there's not.

Dave Ramsey (3:07)

You said you had a dump truck and what?

SPEAKER_3 (3:10)

Yeah, it's an end dump truck, so it's like 18-wheelers.

Jade Warshaw (3:14)

Okay.

Dave Ramsey (3:14)

Where is it?

Jade Warshaw (3:17)

You said it's still in operation?

SPEAKER_3 (3:19)

Yes, my husband's the one that's doing it now, the operation.

Dave Ramsey (3:23)

And so what is owed against that other than the SBA loan? Nothing?

SPEAKER_3 (3:27)

No, no, because we paid them off. We paid off those.

Dave Ramsey (3:31)

So what's the 18-wheeler rig worth?

SPEAKER_3 (3:36)

Let me have it right here.

Okay. So there's a Peterbilt. It said, I looked it up and it said like 30 grand. It was worth, and then we have a frontliner. It says it's 20 grand, but that one is not working. And then we have a, let's see.

Jade Warshaw (3:57)

What's wrong with the one that's not working? How much would it take to repair it and sell it off maybe?

SPEAKER_3 (4:02)

Maybe like 10 grand or more.

Jade Warshaw (4:05)

To repair it, okay.

Dave Ramsey (4:06)

And then you've got, what other equipment have you got other than those two tractors?

SPEAKER_3 (4:11)

We also have, well, the other ones are like just under his name. They're not on their mind, but we have also a frontliner and that one, we got it for $550, but I guess the book says something else. I don't remember how much my husband said.

Jade Warshaw (4:28)

What does the book say you can get for it?

SPEAKER_3 (4:32)

I don't know. It didn't, like he told me, but it just didn't stick in my head. I was just thinking about the amount.