Rinse and sort through the beans, discarding any debris. Place in a large bowl and cover with water. Soak overnight or for 8 hours.
Add the ground beef to a 5.5 quart dutch oven and brown, crumbling as it cooks. Remove from the pan and drain the grease.
Dice the bacon and add to the dutch oven. Cook, stirring often, until crisp.
Add the onion and jalapeno the pan and cook for 2 minutes.
Stir in the garlic and cook for 30 seconds.
Return the ground beef to the pan with the bacon and vegetables.
Drain the beans and add to the pan. Cover with 7 cups of water.
Stir in the ketchup, brown sugar, and molasses.
Bring to a boil over high heat, reduce to a simmer, and cook, covered, for 1 hour and 30 minutes. Stir every 30 minutes.
Stir in the seasoning packet that came with the beans along with the the salt and pepper. Cook for 30 minutes more, uncovered.