For someone with $90,000 in credit card debt, no assets, and a negative net worth, Chapter 7 bankruptcy to fully discharge the debt is probably the cleanest option, especially before a new business accumulates assets.

12:02they're going to lower the balance. >> And finally, I'd talk to use AI to ask too. I mean, locally, wherever they live, there's probably resources. >> It's worth it. Yeah, I would again I would avoid the for-profit ones. I I think you're probably going to get taken and it's going to be more debt. And I would also talk to a bankruptcy attorney. Chapter 7 fully discharge the debt. Like, it

12:18doesn't take all that long from what I understand. It's probably the cleanest option. But I think you run all the numbers from there and see what makes the most sense. Um bankruptcy attorneys can tell you like, they'll probably tell you it's better to resolve this now before the business has any assets. Right? So, I I I think you have to ask your friend how much confidence he has that this business is

12:38going to succeed. Doesn't sound like you have much confidence. Again, it's a great story if it works out. It's a sad story if it doesn't. I'm guessing bankruptcy's probably the cleanest option here. To be honest. E- especially if he's going to give this company a a a spin. Plus, at that point you can do the Michael Scott thing and just walk in front of your friends and

12:55say, "I declare bankruptcy." I declare it, right? Bankruptcy! I I think that's probably the best option. >> I mean, and >> Start free and clear. >> Maybe maybe I'm being too optimistic, but I would just say $90,000 to an individual sounds like a ton of debt. For a business, that doesn't sound insurmountable. You know what I mean? Like, so if the business ends up doing well and is is you know, making profits

13:20then, you know, it might not be as big of a deal. But, yeah, we have no idea what the business is, so. >> I'm guessing if you're trying to get angel investors they're probably going to want to see cleaner books before giving money. But maybe it's a maybe it's a brilliant idea. >> Well, that's a good question. I mean, this is very niche, so you might not

13:34know, but would that deter angel investors if you filed bankruptcy? >> I mean, if if they did like a third-party background check, it's possible. But I guess that it's easy to explain like, "Hey, I'm I'm getting trying to build this business." So, I don't think it's like the end of the world. >> My bankruptcy is your alpha. >> There you go. >> right? >> Yep. All right. Next question.

13:55>> Okay, up next we got one from Dave. A financial planning topic that I think has not been covered much at all in episodes of Ask the Compound is the role estate planning plays in financial planning. With Bill and Bill, we know income tax planning is part of the Ritholtz Wealth Advice Services provided. But what about estate planning? >> Yeah, this is a question from Dave who's

14:15always in the live chat every week. And last week he said, "Hey, when's Taylor coming back on the show?" Uh Taylor was on maternity leave for a couple months, so let's let's bring her back. She's here. >> Hey Taylor. Uh you're uh you're muted, Taylor. >> Sorry. Hi. How quickly I forget, right? >> Yeah, Duncan waves on the zooms and Taylor mutes yourself. >> [laughter] >> Good to be back.