Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says - Aug. 3, 2014

dave says2 300KENTUCKY (8/3/14) — This week Dave discusses Chapter 7 vs. Chapter 13 and 100 percent mortality rate.

Dear Dave,

What’s the difference between a Chapter 7 bankruptcy and Chapter 13 bankruptcy?

Claudia

Dear Claudia,

Chapter 7 bankruptcy is what most people think about when they hear the word “bankruptcy.” It’s total bankruptcy, almost like dropping an atomic bomb on your entire financial picture.

Virtually all of your unsecured debt (except student loans, child support and money owed to the IRS) is wiped out. These things are not bankruptable. About 98 percent of the time, creditors of your other unsecured debt — things like credit cards and alike — get nothing. Items that are secured debt, such as your car or house, are treated a little bit differently. If you’re behind on payments, you may be allowed to get current. In most cases, banks will allow you to re-sign in a process called reaffirming the debt.

Chapter 13 bankruptcy is a payment plan structured over five years. In it, you have to pay all of your secured debt. If it has a lien on it, you pay 100 percent to keep the item. You also have to pay a portion of your unsecured debt. Again — like in Chapter 7 — debt to the IRS, child support and student loans don’t go away. For any other unsecured debt, you can pay a percentage of what’s owed. An overall payment plan is developed, and you make those payments for five years.

I’m not a big fan of either one.

—Dave


Dear Dave,

Do you think it’s unreasonable to ask my 76-year-old husband to have a will drawn up? He had one made when we lived in Florida, but we moved to Georgia. He won’t do it, because he says wills aren’t recognized in Georgia.

Cam

Dear Cam,

Wills aren’t recognized in Georgia? Where did he get his legal advice, in a bar or pool hall?

Okay, let’s straighten this out. The will he had drawn up in Florida wouldn’t be recognized in Georgia, but he could have one made in Georgia that would be absolutely valid and legal. Everyone: No matter where you live, you need a will. If you die without a will in place, your family has to go through the court and jump through all sorts of hoops to settle the estate. The process can take several months. No one should leave their loved ones in that kind of predicament, when having a will drawn up is such a simple an inexpensive process.

Everyone needs a will, Cam. Human beings have a 100 percent mortality rate, okay? No one is getting out of this thing alive. You need a will, a full estate plan with specific instructions on what to do with all your stuff after you die.

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: "Financial Peace, More Than Enough," "The Total Money Makeover," "EntreLeadership and Smart Money Smart Kids." His newest best-seller, "Smart Money Smart Kids," was written with his daughter Rachel Cruze and recently debuted at No. 1 on the New York Times best-seller list. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

button coupons
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
button classifieds

In Other News...

Madisonville Police Charge Woman with Terroristic Threatening

MADISONVILLE, Ky. (11/24/14) — Madisonville Police responded to a disturbance complaint on Hall Street Saturday, Nov.… Read More

HCCHS Softball Team Selling Pecans

MADISONVILLE, Ky. (11/25/14) — The Hopkins County Central High School softball team is selling pecans again this year.… Read More
Started 11/8/2013
Started 11/8/2013

Most Read This Week

November 21, 2014 6510

Man Accused of Assaulting Coach During Basketball…

in Local (Muhlenberg) Top News by Rita Dukes Smith, SurfKY News Director
November 22, 2014 4239

One Injured in Two Vehicle Collision in Greenville

in Local (Muhlenberg) Top News by Miria Thomas
November 21, 2014 3992

Crashing Dump Trucks in Work Zone Cause Pennyrile…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
November 19, 2014 3940

Is Bankruptcy Your Best Option?

in General News For All Sites by SurfKY News
November 19, 2014 3758

Two Killed When Vehicle Becomes Airborne, Strikes…

in Local (Owensboro) Top News by Daviess County Sheriff's Office
November 21, 2014 3242

Muhlenberg District Court Fines Handed Down

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
November 19, 2014 3209

Three Injured in Two-Vehicle Collision on South…

in Local (Hopkins) Top News by Gwen Smith
November 21, 2014 3021

Madisonville Police Arrest Reports - Nov. 21, 2014

in Hopkins News by Madisonville Police Department
November 21, 2014 2657

Swimming and Diving Closes Fall Season at Ohio…

in General Sports For All Sites by UK Athletics
November 20, 2014 2479

Local Church Prepares for 'Return to Bethlehem'

in Video by Gary Gates, SurfKY News

Stories Trending Today

November 24, 2014 2279

Two Charged for Possession of Meth After…

in Local (Muhlenberg) Top News by MCSO/PIO Alex Piper
November 24, 2014 2123

Madisonville Police Charge Woman with Terroristic…

in Local (Hopkins) Top News by Madisonville Police Department
November 24, 2014 1530

Hopkins County Sheriff's Reports Released

in Hopkins News by Sheila Hopper
November 24, 2014 1503

Madisonville Police Arrest Reports - Nov. 24, 2014

in Hopkins News by Madisonville Police Department
November 25, 2014 1358

Madisonville Man Charged for Selling Cocaine

in Local (Hopkins) Top News by Madisonville Police Department
November 24, 2014 1298

Mustang Bass Team Chosen for Next Season

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
November 24, 2014 1282

Salon G in Business of Making Women Beautiful for…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
November 24, 2014 1144

Dawson Springs Police Reports Released

in Hopkins News by Melissa Heflin
November 25, 2014 1114

Call for Help Results in Arrest for Possession of…

in Local (Hopkins) Top News by Madisonville Police Department
November 24, 2014 1053

Santa and Mrs. Claus Coming to Thistle Cottage

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss