People with debt sometimes feel that it is unfair or unethical to file bankruptcy and discharge their debts.
After all, if you borrowed the money, then you should pay it back, right?
And we agree, of course people who can afford to should pay it back
What about people who can’t afford to pay it back?
One big secret of bankruptcy law is that there are very few people who can afford to pay back their debts but who file for bankruptcy anyways.
- Most of the debts that get discharged in bankruptcy would never be paid back anyhow, simply because the debtor does not have enough money to pay them
Think about it this way.
A person makes $30,000 per year has:
- $50,000 in student loans
- $20,00 in high-interest credit card debt
And so will not have enough money in their bank account to pay everything off.
Why do people file for bankruptcy?
So why do people file for bankruptcy?
Most people end up in this situation because of things like they:
- Had a better paying job, but lost it
- Got divorced and broke up a family
- Went to the hospital
In my experience, the majority of debt and bankruptcy cases we see don’t come from bad decisions, lavish lifestyles or deliberate overspending.
So if :
- The debt did not come from fraudulent intent
- The person does not have enough money to pay it back
What is the harm in officially saying that the person doesn’t have to pay it back?
None in my opinion.
Why should people file for bankruptcy?
Filing bankruptcy allows people to get out from the burden of debt they can’t afford, so that they can:
- Get back to paying their normal bills on time
- Go to work every day without fear of having their bank account frozen or their wages garnished
This is an unquestionably good thing for everybody and so, no, it’s not unethical to file bankruptcy at all.
Conclusion
If you’re struggling financially then why not contact us at 612.824.4357 and tell us how we can help you?
We’ve got offices in Minneapolis, St Paul, Blaine and Brooklyn Park, so we’re close by.
With weekend and evening appointments available for your convenience, what are you waiting for?
