Rachel called “The Ramsay Show” to seek guidance on how to separate shared finances after the end of a five-year relationship that left her saddled with multiple shared debts.
She said they broke up about two months ago but their finances still involved a house, two cars and several loans. Her family suggested bankruptcy as a way to start over, prompting her to seek another perspective.
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Ramsay added that bankruptcy would not be appropriate for Rachel’s situation, citing her income levels and the way her debts were set up. “You’re going to file for bankruptcy for no reason because you’re not bankrupt — you’re just disillusioned with the partnership,” he said.
Rachel said there were about five joint finance projects, including a house, two cars and at least two personal loans. She said she was still confirming whether the additional loans were held jointly or solely in her name.
Both names are on the home deed and mortgage, she said. Online estimates put the home’s value at about $130,000, with about $90,000 remaining on the loan after a recent refinance, but she doubts the accuracy.
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She also outlined vehicle debt. A loan was used to purchase a truck, with an initial financing cost of approximately $42,000 and approximately $30,000 currently owed. The second car was worth about $20,000, with a similar remaining amount. Rachel said she was currently driving.
In addition, she stated that the remaining shared personal loans total approximately $8,000. She added that they did not share credit cards and had never opened a joint checking account. “You signed all of this,” Ramsey said, adding that both parties were legally responsible for the obligations.
Rachel said she had recently changed jobs. She said her annual income is between $60,000 and $65,000 and is expected to increase to $80,000 to $85,000 per year.
After the breakup, she said she moved out of the house so her ex-partner and his son from a previous marriage could stay there. She said they have discussed working out their debt in the future, although both their credit scores have declined over time, making refinancing more difficult.