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More About Bankruptcy Ethics...
Considering the moral and ethical obligations regarding anything is a huge undertaking. Bankruptcy is no exception. You don't have to become a doctor of philosophy, but it wouldn't hurt to take a bit of time to consider the moral and ethical obligations of bankruptcy before you file.
Ethics can be loosely defined as a system of morals, and morals are based on what your conscious says is right or wrong rather than what the law says. While the ethics and morals of bankruptcy might seem a subject as dull as dirt, it really has to do with the way you see the world.
When you undertake a debt, you make a promise to repay it. Sometimes it's an implicit promise such as a debt of gratitude for a gift or kindness you have received, and sometimes it's explicit like a legal debt involving financial considerations. It is usually a lot easier for us to repay a debt of gratitude than pay bills or repay a loan.
Someone who files bankruptcy is actually reneging on a promise to pay. The cause of bankruptcy may be something beyond the control of a person--huge medical bills are one example. On the other hand, someone's financial problems may be caused by their inability to live within their means. Both the underinsured medical bill payer and the freewheeling spender can declare bankruptcy. Do both have an equal moral obligation to pay their debts? What if they can't? Does that make one or both of them immoral'
One of the reasons given for the Bankruptcy Abuse Prevention and Consumer Protection act was the growing number of people who seemed to be using chapter 7 bankruptcy to escape debt repayment regardless of their ability to pay all or part of their debts. The bankruptcy law now includes a closer look at the ability to repay loans. People who can pay even part of their debts are obligated to file chapter 13 bankruptcy rather than use chapter 7.
The ethical and moral considerations of bankruptcy do not concern only individuals. Business bankruptcy can range from a sole proprietorship with no employees to a huge business such as Enron. What are the ethical and moral obligations of the stockholders, company officials, and the public when many people are affected by a business bankruptcy'
These few topics give you some idea of the large scope of the ethical and moral considerations of bankruptcy. There has been at least one book published on the subject. If you decide that ethical and moral considerations require you to repay debt you may owe outside of your obligations under bankruptcy, be sure to consult a bankruptcy attorney. Surprisingly, even your good intentions could have legal consequences you haven't thought of.
The bankruptcy law determines whether bankruptcy is available to you. When you can file, the law determines how your assets will be used to pay your debts. You may feel obligated to find another way to pay your debts. Only you really know what is right for your circumstances.
The bankruptcy law determines whether bankruptcy is available to you. When you can file, the law determines how your assets will be used to pay your debts. You may feel obligated to find another way to pay your debts. Only you really know what is right for your circumstances.
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