On a video posted on The Ramsey Show - Highlights YouTube channel in 2020, the American personal finance personality offered guidance to Margaret,
On a video posted on The Ramsey Show – Highlights YouTube channel in 2020, the American personal finance personality offered guidance to Margaret, 54, on how she can plan for retirement, now that her husband has filed bankruptcy. She had to completely dissolve the retirement fund to pay for legal costs.
The couple filed bankruptcy and now have no money set aside for retirement.
Margaret explained that her husband will be discharged from a chapter seven bankruptcy and after that he has an Internal Revenue Service (IRS), which is the revenue service that collects taxes in America, issue to deal with.
The settlement and keeping the business going has dissolved all of their retirement and they have credit card debt of £22,000 (around $30,000).
Fortunately, in 2015 Maggie inherited Small Business Corporation – meaning a tax classification that can protect small-business owners’ assets from double taxation.
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She had a household income of £118,000 (around $160,000) and she owns her own home which is worth £510,000 (around $690,000).
The first mortgage is £325,000 (around $439,000), and the second mortgage is £53,000 ($72,000).
Her and her husband have been married for 15 years and they have a 13-year-old to look after. Maggie owns her own business so has been able to support her family in their tough times.
Once the settlement clears and her husband is free of the chapter 13, Margaret said he will essentially be “broke” at this point as he will have nothing.
“Should I sell this house to become mortgage free quicker?”
Responding, Dave told her to seek marriage counselling for her relationship.
He advised they seek guidance from someone they respect.
He said that they can get through this, but they have to be patient with each other.