Bankruptcy----Is it Just a Way to Shirk Responsibilities?
Posted: Saturday, April 04, 2009
by Sandra E. Graham
My Books and Articles
A new bankruptcy law had stalled in Congress due to a controversial amendment that prevented abortion protesters from filing for bankruptcy to avoid paying court-ordered fines for violence against abortion clinics.
There are different types of Bankruptcy filings-Chapter 7 which consists of liquidation (sale of a debtor's nonexempt property) and distributing the proceeds amongst the creditors. Then there is Chapter 13 bankruptcy, which involves adjustment of debts for someone with regular income and includes a court-mandated plan to repay a portion of the debt.
The news is filled with criminals who use this very system, exploiting its loopholes to rid themselves of debts to their victim's families. Very seldom are court-ordered payments actually fulfilled, simply because the person was allowed to file bankruptcy.
A homeowner rents out a house to someone who stops paying rent after a few months, but continues to occupy the premises until they are physically evicted by the Sheriff's department. They have left the house in a shambles; holes in the walls and ceiling, broken doors, graffiti and grime covering every available surface. Costs for repairs to make the property inhabitable again runs into the thousands of dollars. The owner hires an attorney and files for back rent and damages. The court orders the renter to pay. The homeowner receives the first small payment; but before the check can be cashed, the money has to be returned because the renter has filed bankruptcy and is absolved of all debts..the American Way.
However, not all bankruptcies are filed with calculated disregard and dishonesty. Many people, especially in the economic slump we are all now facing, are forced to file bankruptcy due to job loss, huge medical debts, caring for elderly family members or sick children. Cases cannot be lumped together in a one-size-fits-all' category. There has to be a way to separate the get something for nothing' few from the consumer who has fallen on hard times due to no fault of their own.
Anyone contemplating bankruptcy and still has credit cards at their disposal should avoid using them, as there are laws now that will still allow the credit card companies to collect on these purchases. Seek a good bankruptcy counselor before making the final decision to file and get help choosing the chapter level that best fits your case.
This Article has been viewed 1,865 times. (Not updated in real-time.)
More commentsIn many respects you are correct. Not that long ago I was shouting at a man for buying a car while being "bankrupt".With some people, it is like a sickness--purchasing things that they well know that they cannot afford.Thanks for reading and commenting.Sandra
Great article Sandra. I love how you concluded it with hopeful instructions. I don't think bankruptcy itself should come to a halt. Our Government need to; as with a lot of things, govern it better. Especially, when it comes to court orders protecting victims and their families. To the abusers, yes it is shirking responsibility. But, to those who have no other recourse, it's a rescue. No matter what programs we come out with, when abusers are allowed to be apart of them they will always end up spoiling the bunch.DeborahThanks for reading and commenting, Deborah. And yes, there are some cases where bankruptcy isn't a choice, but a necessity. I myself had to file many years ago when I was young. My husband lost his job and I could not handle the bills alone. I tried hard for six months, but it just became too much to handle with three small children to support and only one income.Sandra
It is quite a problem. It seems that the unscrupulous always find a way to beat the system. Your article raises some good questions. I wish I had an answer.Thank you, Ken. thanks for reading and commenting. Yes, I wish someone had an answer for all our economic woes.Sandra
I heard it once said that poverty is in the mind, not the pocket (something like that). It is the same way with those who file for bankruptcy. There are those who will file because they are impoverish in the mind. They will never get back on their feet because they have no ambition to do so. Then there are those who file, but know that they will work hard and be back on top once again.Many years ago, my brother filed for personal bankruptcy, due to an economic downturn. He lost two retail businesses, his cars and his house. Five years later he was back on top. He has now owned his own company for the last 27 years and is making more money than I've ever seen.I believe bankruptcy laws are there to give people a second chance; some take the opportunity for this, while others just abuse the system.I also had to file bankruptcy many years ago, for economic reasons; but yes, I finally got back on top and have been there for much longer than I was down. It just takes hard work and determination.Thanks for reading and commenting.Sandra
Sandra, I am glad you acknowledged the elderly and the folks that have been forced to file chapter 7, but you know, I think you are right about letting certain folks whom abuse the system to file bankruptcy why there are folks out there that file MULTIPLE TIMES that have no business having the right to do so. Those are the irresponsible ones, and so is our system, for allowing this kind of activity to happen. They should appoint a court appointed trustee, that will monitor bankruptcy's, a bean counter if you will, to monitor and assist those that need to learn the how to's of money management. They should not keep letting them file one bankruptcy after the other, they file, wait 7 years, meanwhile getting limited credit cards that have a cap on them, and they start all over again. If you have a bean counter to monitor the activity of those individuals that have filed bankruptcy more than once, then they should be held accountable and subjected to criminal charges. Only those that can PROVE their competency as far as handling money, but circumstances beyond their control, i.e. laid off from a job, injuries that prevent them from working long term, etc should be allowed to file bankruptcy....whew....I reckon I over commented on this one, but it is a good article, and one that I am passionate about....in short I think you are right on with this article, and enjoyed the read....your fan, and friend.......Gary.Thanks Gary. I think we can all say that this is something that concerns us all.Thanks again.Sandra
For some people I think it is a way of life to abuse the system, and not just when filing for bankruptcy. Yes, it would be nice if we could find a way to stop the abuse. Thank you for an interesting article.Linda dThanks, Linda, for reading and commenting and yes, there are many ways to abuse the system. Too many loopholes for the crafty and dishonest!Have a good day.Sandra
Great article. In the UK so many people are loosing there jobs currently because of the credit crunch/recession, many of these people have young families, it raises the questions is enough being done to protect them, while there are others abusing the system or using it as a get out of jail free card.It is the genuine family man/women who has lost there job and can not pay the mortgage who is suffering, they lose the house and their pride, i can imagine that are not many worse mental feelings than not being able to provide for your family. Something needs to be done!That is so true--and probably all over the world. Thanks for reading and commenting and Welcome to Searchwarp.Sandra
Sandra, good job, the new limit for chapter 7 is $71,000. How many make 30k less then that and are allowed top keep $2000 in assets. They'' take your first born if they can and sell them. Now even of you have a homestead they can take your home. Most people do not know that. We are talking "unsecured debt here" dor the most part yet they drag you through bankruptcy, can garnish your pay, place additional hardships on a person or a family yes and they profess God and tell you help is on the way. Yes and peoplesuck that all up and say give em a chance. Well lets hope no one has to find out what this new revised bill has done to many, right chuck and bill and nancy and harry and Obama.Yeah, I'm really not that versed on how the different chapters work---with all the new changes and amendments. I didn't know they could take your home. I thought you could keep your home and a vehicle. But I haven't dealt with bankruptcy for many years and hope I never have to again. I feel for all the people that it is happening to now. Thanks for checking back in, Robert.Sandra
Sandra I just wanted to finish off the rest of the story to my earlier comment because I do feel it has meaning. Not everyone as you noted runs from it, many just can't do and their credit already ruined with no options. Just remember these honorable leaders never speak to or mention usury [a sin by any real Christian standards or beliefs] that has forced many to go that route, nor of the banks who won't work with people and force them into it, or the bill collectors threats. Yes like that big target on our back right now go directly to the lawyers, or else. Well not everyone runs they just make you. Best wishes, RobertGood analogy--the 'Target on our backs'. Just the way most of us feel sometimes. And now along with the wolves at the door, we have the lawyers there beside them!And you have to come up with money you already don't have to get yourself out of the monetary fix you are already in. Vicious circle!Thanks again, Robert.Sandra
Great article!Thanks for reading and commenting. And Welcome to Searchwarp.Sandra
More comments
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.