George Kamel Gives 5 Powerful Reasons To Avoid Bankruptcy at All Costs
Whether you’ve lost your job, faced huge medical bills or simply fallen behind on your debt payments, bankruptcy can seem like a way to get some relief, but it also has some serious long-term effects on your finances that you must consider.
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While United States Courts reported a nearly 12% year-over-year jump in personal bankruptcy filings as of June 30, 2025, in a recent YouTube video, financial expert George Kamel, gave five reasons why you should avoid bankruptcy at all costs. Read on to explore what Kamel recommended in terms of what to do instead of pursuing this last-resort option.
It Appears on Your Public Records
Your bankruptcy filing becomes public information that others can find through online records systems. While it can be awkward for anyone to know about your financial troubles, Kamel explained that it’s especially a drawback when you’re looking for a new apartment or job. For example, if you want to work at a financial firm, a recent bankruptcy might hurt your chances.
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It’s Expensive
Considering you’re likely considering bankruptcy to get financial relief, learning about the costs involved can be an unpleasant surprise — and one you might not be able to afford.
According to Kamel, the initial filing fee will run from $313 (Chapter 13) to $338 (Chapter 7), and you may be on the hook for another $4,000 or so if you use a bankruptcy attorney. Experian noted that required credit counseling education can tack on an additional $10 to $50 per course to your expenses.
Kamel added, “Which means you’re not only broke now — you’re also paying thousands for the privilege of telling the world about it and dealing with the legal system.”
It Severely Damages Your Credit
According to myFICO, a bankruptcy remains on your credit report for seven to 10 years, depending on the type filed. This means you risk experiencing long-lasting credit score damage.
Like other Ramsey personalities, Kamel isn’t big on credit scores and discourages getting into debt. However, he still acknowledged having a low credit score can be a problem.
Besides potentially preventing you from qualifying for loans, it can lead to higher insurance rates, required security deposits for utilities, difficulties getting a job or apartment and worse interest rates on the credit products you can access.
It Makes Homeownership Goals Harder
If you’re planning to buy a house someday, keep in mind that bankruptcy usually makes lenders much more reluctant to work with you. So, the negative mark on your credit report and the resulting credit score damage can leave you stuck where you are for a while.
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