A 29-Year-Old Asked How To Separate A Shared Mortgage, A $42K Truck And A $20K Car — Dave Ramsey Advised Against Bankruptcy

Rachel called “The Ramsey Show” seeking guidance on how to separate shared finances after ending a five-year relationship that left her tied to multiple joint debts.

She said they broke up about two months ago, but their finances remain tied to a house, two vehicles, and several loans. Family members suggested bankruptcy as a way to start over, prompting her to seek another perspective.

“Filing bankruptcy on this is kind of like taking poison and hoping he dies — you’re killing you,” personal finance expert Dave Ramsey said.

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Ramsey added that bankruptcy was not appropriate in Rachel’s case, citing her income level and the way the debts were set up. “You will have filed bankruptcy for no reason, because you’re not bankrupt — you just have a partnership disillusionment,” he said.

Rachel said there are about five shared financial items in total, including a house, two vehicles, and at least two personal loans. She said she is still confirming whether an additional loan is jointly held or in her name alone.

She said both names are on the house deed and mortgage. An online estimate placed the home’s value at about $130,000, with roughly $90,000 remaining on the loan after a recent refinance, though she questioned the accuracy.

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She also outlined the vehicle debt. One loan was used to purchase a truck originally financed for about $42,000, with roughly $30,000 still owed. The second vehicle is a car valued around $20,000, with a similar balance remaining. Rachel said she is currently driving the car.

In addition, she said the remaining shared personal loans total about $8,000. She added that they do not share credit cards and never opened a joint checking account. “You signed all of that,” Ramsey said, adding that both parties are legally responsible for the obligations.

Rachel said she recently changed jobs. She said her income had been between $60,000 and $65,000 a year and is expected to increase to between $80,000 and $85,000 annually.

After the breakup, she said she moved out of the house so her former partner and his sons from a previous marriage could remain there. She said they have discussed addressing the debts in the future, though both of their credit scores have declined over time, making refinancing more difficult.