We write a personal bankruptcy blog. We are not religious or philosophical in approach. Most of our clients have decided to file for bankruptcy without asking us our view of these subjects. There are, however, many ways to look at the morality of filing for bankruptcy and discharging your debt obligations.
What is right? When is it wrong?
Contracts and Bankruptcy
The bankruptcy laws clearly allow you go get out of most contracts and discharge your debts, allowing for a “fresh start” under the bankruptcy law. Contracts that are dischargeable include credit card agreements. This is one source of concern for those considering the morality of bankruptcy. You signed the credit card agreement, you bought the goods and services, don’t you now have the moral obligation to do anything and everything to pay it back?
Perhaps, but folks should also consider the morality of the contract. Your contract with the credit card company did not allow you to negotiate interest rates. Nor did the contract contemplate whether you could take a month off when a family member is sick or you get laid off. Even if you agreed to resume payments the following month, credit card companies are not going to listen to your personal situation; they are going to up your interest rate and penalties to the highest allowed under your “contract” and go from there.
Business contracts are also dischargeable. Is this moral? In order to get a fresh start, and to not saddle our entrepreneurs with debt following a business failure, the law clearly allows business debts to be dischargeable. This includes when a person obligates him or herself on a business debt. This is capitalism. It’s understood at the time someone signs the contract that he or she could ultimately file for bankruptcy. It’s factored into the deal, the interest rate, and both sides know, or should know, this.
Medical Bills and Bankruptcy
Is it immoral to discharge your medical bills in bankruptcy? Won’t this have an adverse affect on others trying to get medical services? We don’t have answers to these important questions.
Medical bills and hospital bills are dischargeable in bankruptcy. Most folks filing for a “medial bankruptcy” have significant medical bills that they could never repay in the foreseeable future. Should they be stuck, without the ability to get a fresh start, with those bills?
Religion and Bankruptcy
We are not going to undertake a religious survey to determine which religions, or which sects of which faiths, are opposed to bankruptcy. However, it if is forbidden by your religion, you have the right to look at the law as a tool that is, for an important reason, not an option for you. Or, you can bend the rules of your faith. Perhaps there are even ways, within your faith, that bankruptcy could be considered.
Get an Experienced Bankruptcy Lawyer
If you have a religious or morality issue you can still consider filing for bankruptcy. We offer free consultations. We cannot offer religious or morality advice, however, we can provide information on how to file for bankruptcy, how to discharge your debts, and then you can decide if the law can work for you. Attorney Neil Burns has 28 years of experience. He has worked with many folks who have many different approaches to viewing the morality of bankruptcy. He will work with you too.
