I'm $1,000,000 In Debt

Summary

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The Ramsey Show Highlights

Episode: I'm $1,000,000 In Debt
Date: September 22, 2025
Host: Dave Ramsey (C)
Caller: John (B)

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Episode Overview

In this intense episode, Dave Ramsey takes a call from John, a 33-year-old husband and father of three, who finds himself facing $1 million in debt after the closure of his business. John lays out his financial situation, and Dave offers tough love, practical advice, reassurance, and hope—not just about surviving financial disaster, but about protecting marriage and self-worth through the ordeal.

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Key Discussion Points and Insights

1. The Debt Breakdown

John honestly outlines his debts, which span several sources:

• SBA Loans: $250,000
• IRS Taxes: $350,000
• Credit Cards (now in consolidation): ~$96,000
• Mortgage: $250,000
• Car Loan: $8,000
• Accountant & Attorney Fees: $23,000 (split between the two)

Quote:
“We got ourselves in a little bit of a mess. We're looking at about a million dollars in debt at the moment.” – John (00:09)

2. IRS Troubles & Professional Fees

John shares he’s on an IRS installment plan due to payroll tax issues, but confusion remains about the amounts and which portions are dischargeable or not.

• IRS installment plan set at $500/mo, but status uncertain
• Attorney’s work centered on IRS negotiations
• Dave clarifies: IRS debts, especially certain payroll taxes (Form 941), cannot be discharged in bankruptcy.

3. Financials and Assets

John details income, age, family status, and assets sold:

• Current Income: $140,000/yr (was recently $260,000 before layoff)
• Wife’s Income: $20,000/yr
• House Value: $550,000
• No other assets remaining
• Rental, land, and flip property all gone to cover prior debts
• Family: Married 8 years, 3 kids

4. Emotional Toll & Marital Stress

Dave draws on his own bankruptcy experience to offer emotional guidance as well as tactical advice.

Quote:
“One is this stuff will destroy your marriage if you don't fight for your marriage. And so the two of you have to sit down and say, regardless of what happens, we're it. We're doing it together. We're in it to win it, and we have to lock arms. And it's you two against everybody else.” – Dave Ramsey (04:13)

• Dave reinforces: marital unity and emotional support come first.
• Acknowledges wife’s fear and spouse’s loss of confidence.
• Reassures: “You're a lot better than you feel about you right now. Okay? Hear me, brother. You're a lot better than you feel about you.” (05:33)

5. Survival Priorities

Dave lays out a clear order of financial priorities:

• Food on the table
• Utilities on
• First mortgage payment
• Nothing and nobody comes before family survival

Quote:
“Food on the table trumps anybody else's request. Lights and water kept on trumps anybody else's request. Paying the first mortgage on the residence. So we have a place to eat. We have food and water and utilities. Trumps anybody else's request. No one gets in line in front of your family. Do you hear me?” – Dave Ramsey (06:18)

6. Strategic Next Steps & Bankruptcy Discussion

• Advice to consult a bankruptcy attorney: “You need to get the advice of a bankruptcy attorney. I'm not telling you to file, but you need to learn what your options are.” (08:11)
• Suggests the possibility of selling the home to deal with IRS debt, as IRS obligations aren’t dischargeable.
• Points out that SBA and credit card debt may be cleared in bankruptcy.
• Car payment prioritized (need to get to work).

Quote:
“I'm concerned that you make it and that your wife makes it and your marriage makes it and your kids make it, and the rest of these people can jump off a cliff. They're irrelevant to me. The SBA is going to get what they deserve, probably, which is nothing, because they're bankruptible. The IRS is not bankruptible, and those 941s are not going away. So that thing right there is a real mess.” – Dave Ramsey (07:38)

7. Encouragement and Support

• Dave promises continued support: “And we're here if you need us. You call me anytime. I'm here to help you. I've been right where you are.” (09:10)
• Offers a free Ramsey coach to John and his wife.

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Notable Quotes & Memorable Moments

• “I remember being right where you are. I was 28 with two, and. And I didn't make it. I ended up bankrupt. But I can share with you a couple things, okay?” – Dave Ramsey (04:13)
• “If you're normal, this has taken a lot of your confidence and your swagger away.” – Dave Ramsey (04:54)
• “We're gonna do this. We're gonna make it. We're not going to jail, and we're not gonna go hungry. I don't know what else bad is going to happen, but those two things we do know, okay?” – Dave Ramsey (05:24)
• “Take care of you, John. Take care of your wife, okay? Promise me.” – Dave Ramsey (09:05)
• “Thank you, Dave.” – John, audibly grateful (09:21)

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Timeline of Important Segments

| Timestamp | Segment | |-----------|---------| | 00:09–01:52 | John lays out his million-dollar debt and its sources, including IRS confusion | | 03:01–03:31 | Asset realization: house is only remaining major asset | | 03:38–04:11 | John shares income and family details | | 04:13–05:33 | Dave shares personal bankruptcy, emphasizes marriage and self-worth | | 06:18–07:01 | Dave’s survival first approach and prioritization | | 08:03–09:09 | Practical advice: bankruptcy options, attorney consultation, and emotional support |

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Summary & Takeaway

This episode demonstrates the gravity of financial collapse and the human cost behind the numbers. Dave Ramsey matches hard-nosed financial guidance with deep empathy. The key takeaways:

• Protect your marriage and family first.
• Utilities, shelter, and food always come before creditors.
• Understand not all debts are equal—IRS obligations must be prioritized.
• Consult legal and financial experts before major decisions like bankruptcy.
• Emotional recovery is as vital as financial recovery.

Dave’s lived experience and compassion are front and center—a reminder that even out of financial ruin, hope and new opportunity can be found.

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Transcript

[A]

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[B]

My wife and I, we got ourselves in a little bit of a mess. We're looking at about a million dollars in debt at the moment.

[C]

On what?

[B]

Well, I just closed down my business in June, and so we had taken out some SBA loans to keep the business afloat. And then we also have our house credit cards, we have IRS taxes due, and, you know, a couple other things.

[C]

How much is the. How much is the SBA.

[B]

Right now? I think there's about 250,000 left on them.

[C]

How much is on the IRS?

[B]

It's 350,000. Okay.

[C]

And how much on credit cards?

[B]

We actually just entered a consolidation loan and that. We weren't sure if that was the right thing to do or not, but it. It dropped our monthly payment significantly. So right now we're at about 100. I think the total payoff was about 96.

[C]

Okay. And so six, seven. What's the three? The other 300. Your mortgage.

[B]

250,000 on the mortgage. We have 8,000 left on a car. And then just repaying our accountants and attorneys.

[C]

Which amounts to what?

[B]

15,000 for an accountant. 8. 8,000 for an attorney.

[C]

And the attorney was for what? I'm sorry, the attorney was for what?

[B]

They actually assisted me through my IRS. They got me an installment plan for $500 a month, which was great until two months after the installment agreement went through. Now. Now they're saying that we have to review everything again and that we will be at least liable for 175,000 to pay in the trust fund.

[C]

I'm sorry, you're liable for 350,000. So where's 175 come in?

[B]

I'm not sure. That's what the officer said when I was on the phone with him.

[A]

An additional 175.

[B]

Not an additional. That's just.

[A]

That includes in the 350.

[C]

Okay, so you didn't. You didn't hold your 9:41 back?

[B]

No, we never held anything back. We just weren't.

[C]

Yeah, they're not going to put that on payments. That's right. I don't disagree with that. Okay, so what is your home worth?

[B]

About 550.

[C]

Okay. And what else do you own?

[B]

Nothing. Right before all this happened, we had a rental property, we had land. We sold all those to. We actually did a flip, and we lost everything on top of that, and then everything kind of just trickled down from that, and then we paid off Some credit cards back then as well, which was about four years ago.

[C]

Are you now working, doing something else?

[B]

Yes.

[C]

What do you make?

[B]

Just recently, I was making 260, but now I'm making 140. I. I got let go from one one job because they just couldn't afford.

[A]

Me anymore, so now it's 140.

[C]

Okay. And you're. Does your wife work outside the home?

[B]

Sir, she makes about 20 grand.

[C]

How old are you?

[B]

33.

[C]

How long you been married?

[B]

Eight years.

[A]

Do you guys have kids?

[B]

Three.

[A]

Three.

[C]

Okay. I remember being right where you are. I was 28 with two, and. And I didn't make it. I ended up bankrupt. But I can share with you a couple things, okay? One is this stuff will destroy your marriage if you don't fight for your marriage. And so the two of you have to sit down and say, regardless of what happens, we're it. We're doing it together. We're in it to win it, and we have to lock arms. And it's you two against everybody else.

[B]

Right?

[C]

Okay. And she's scared. She's scared in a way you don't even understand. And you. If you're normal, this has taken a lot of your confidence and your swagger away.

[B]

Absolutely.

[C]

It did me. It took it all away, okay? Because it just grinds you under a boot. And so once you say those things out loud, that means she gets extra hugs because she's terrified. And we're gonna do this. We're gonna make it. We're not going to jail, and we're not gonna go hungry. I don't know what else bad is going to happen, but those two things we do know, okay? Now, so you protect your marriage, and you understand that that business failure is a part of running a business. Sometimes it happens, and it doesn't define the rest of your life unless you allow it to. But it does suck, and it does make you think that you're not worthy. And you are worthy. You're a lot better than you feel about you right now. Okay? Hear me, brother. You're a lot better than you feel about you. I've been there. I know. And out of the ashes of mine, this whole thing grew. So there's something the other side of this. There's something else to do. But right now sucks beyond belief. So food on the table trumps anybody else's request. Lights and water kept on trumps anybody else's request. Paying the first mortgage on the residence. So we have a place to eat. We have food and water and utilities. Trumps anybody else's request. No one gets in line in front of your family. Do you hear me?

[B]

Sir, yes, sir.

[C]

You take care of them, and then you'll. You'll. Her terror will start to subside, and your confidence will start to grow, and that's where you're going to grow, to fight through this is how. Taking care of those things first, okay?

[B]

Absolutely.

[C]

Are you guys in a good church? You need to be. You're not. You need to be. Okay. You need to get some people around you that love you and. And walk into the presence of God on Sunday morning while you're fighting the devil, because this is wicked stuff you're going through, dude. Okay? It's warfare, and there's no other way around it. You got to fight it. Okay? Now, I don't know if you're going to make it or not. Mathematically, it's a secondary concern. I'm concerned that you make it and that your wife makes it and your marriage makes it and your kids make it, and the rest of these people can jump off a cliff. They're irrelevant to me. The SBA is going to get what they deserve, probably, which is nothing, because they're bankruptible. The IRS is not bankruptible, and those 941s are not going away. So that thing right there is a real mess. You may end up selling the house to clear the stinking irs.

[B]

Right. I was thinking about going bankrupt, but the sba, you know, it's. It's personally guaranteed, so there. I don't know.

[C]

You can't bankrupt the business. You're bankrupt because you personally guaranteed it. And that probably means you're selling house to pay the irs. So you need to get the advice of a bankruptcy attorney. I'm not telling you to file, but you need to learn what your options are, because, number one is not credit cards. They can jump in a creek. I'm not paying them nothing. Forget whatever you're paying them. Screw them, they get nothing. And the sba. Screw them, they get nothing. Right. Now they can all just sit over there and look at this mess because they created it, too. And we're going to get. We're going to work on the irs. Oh, you got to keep the car payment paid because you have a car to get to work. And you need to sit down with a bankruptcy attorney and learn. But I think if there's a way to manipulate through this, you're probably going to end up selling the house to clear the irs. The rest of it is bankruptible, and you can start over. But I don't know how you're going to clear all this, making 140. There may be a way, though. There may be a way. So. But take care of you, John. Take care of your wife, okay? Promise me.

[B]

I promise.

[C]

All right. And we're here if you need us. You call me anytime. I'm here to help you. I've been right where you are. Hang on. Kelly's going to pick up. I'm going to put you with Ramsey coach as my gift. We're going to be with you and walk with you.

[B]

Thank you, Dave.

[A]

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