Carmen in Amarillo owns a business with her mom and sister. They’re all equal partners. They need to reorganize the business to maximize the growth potential. Carmen feels as though the business is just treading water. Dave explains what Carmen will have to do to implement changes.

Joy in Chicago is underwater on her house and wants to refinance but can’t. They make $250,000 a year, and they working through the Baby Steps. They only have $1,000 in their emergency fund. Dave has some ideas for Joy.

Lonnie in Sarasota has a universal life insurance policy. He wants to cash it out but isn’t sure what to do with the money once he receives it. According to the company, he can keep the policy and take out the cash value. He has diabetes and can’t get another policy. What would Dave do?

Josh in Pensacola bought a house seven years ago. It’s a townhouse, and the builder went bankrupt. About 60 units were left vacant, and it became HUD housing. His neighbors did short sales and got out. He owes $123,000, and it appraises for $58,000. What should he do with this house now?

Ben and Julie in Financial Peace Plaza are debt-free! They traveled all the way from Honolulu to celebrate after paying off $72,000 in 13 months making $140,000 a year. Ben is a nurse and worked six days a week to get this done. They owed $20,000 on a car and $52,000 to Sallie Mae.

Rebecca in Arkansas wants to buy a house. Their rent is about 25% of their take-home pay. Her husband wants to save cash and pay for a house in full. Rebecca wants to make the leap now. They have one child, and Rebecca is a stay-at-home mom. Dave thinks they need some more income in the household to pay cash.

Benny in Illinois has $32,000 in debt. He and his wife make about $40,000 a year. They’re considering bankruptcy after trying the Baby Steps and failing. Most of the debt consists of medical bills. Dave doesn’t agree with bankruptcy because income is the real problem.

Beth on Twitter asks if a business should tithe. Dave doesn’t think so.

Jim in Arizona sold a house in 1999. Jim received a summons for the man who bought the house two years ago. He’s in foreclosure, and the house is in New Mexico. Jim can’t figure out why he’s being asked to respond to this summons. Dave agrees that this is a weird situation.

Andrea in Los Angeles says her husband used to make about $100,000 a year at a job with a ridiculous commute. He took a little bit of a pay cut for a better commute, and he’s feeling guilty about it. Should he go back to that job for a little bit more money?

Angie in Indianapolis and her husband are on Baby Step 2. They are in pre-foreclosure and nine months behind on payments. After getting the details, Dave is sure Angie and her husband have lost their house.

Jeff Aleman with the bankruptcy firm Jacoby & Meyers joins Dave to discuss collection abuse.

Dave talks about CollectionBully.com and collectors’ willingness to violate the law in order to collect on a debt.

Heather in Minneapolis is a stay-at-home mom who does sewing at home. She’s been offered the chance to buy a business, but she doesn’t want to use debt to buy it. She isn’t entirely sure she wants to reenter the workforce, but it is an option. The owner wants $70,000 for the business. Dave isn’t sure the numbers add up.

Denise in Austin wants to know what she can do to help a 21-year-old whose parents won’t provide information fill out a FAFSA. What else can she do to provide this information for financial aid?

Nathan in Dallas wants to know if Dave thinks it would be wise to become a single-car family. He’s no longer commuting to work, and his wife is pregnant with their first child. She’ll be a stay-at-home mom. They owe $15,000 on one car, and the other one is paid off.

Nolan in Texas asks what Dave thinks about trading in a car for a smaller car loan. Dave says he’d trade down even further and avoid another loan.

Derek in Twitter is 24 with a wife and child. Should he buy a 20- or 30-year term life insurance policy?

Dave reads comments from listeners.

David in Los Angeles just accepted an offer for a job in another state. He owns a condo he bought as a foreclosure four years ago, and he’s even on the value. Should he sell it or lease it?

Mark in Owensboro is being offered a refinance through Wells Fargo with no closing costs. He can go to a 15-year fixed rate at 2.75%. It’s under HARP, and the home isn’t in distress. Mark isn’t sure he qualifies for this offer. Dave suggests the lender may just want to keep the loan on the books.

Larry in Albuquerque owns a small business that brings in $6,500 a month. The business is debt-free, and he wants to know what it’s worth if he decides to sell it. Dave explains how to value it.

Michelle in Denver is on 100% commission. Her draw is $40,000 a year. She isn’t sure how to budget around this income. Dave tells Michelle how to budget based on this irregular income.

Jan in Indiana says her son graduated from graduate school last year. He has student loans to pay off, and Jan wants to know if debt collection laws apply to Sallie Mae. Dave says that they technically apply to third-party debt collectors.