Previous post:

Next post:

The “B” Word – #FLMonth

by Don Current on April 19, 2011

Bankruptcy

photo courtesy Michael Coghlan

Jake Stichler brings us a question from one of his follwers at DebtSucksBlog.com. It’s a deep one so we will need you to leave your thoughts in the comment secion below.

Question: Is bankruptcy moral?

A) Yes
B) No
C) Only in certain circumstances

Wow. I’m glad this one was saved for later in the cycle after our financial brains have had time to be kicked into gear. So what do you think, and most importantly, why?

  • http://twitter.com/JWfincoaching Jonathan White

    You are right Don, good thing this question was saved for later in the month. Imagine if we had started off with this question!

    Is bankruptcy moral? It’s definitely not an easy question by any means and one of the hardest questions asked so far this month. To answer the question I think you need to first answer, “What is bankruptcy?” Bankruptcy is debt that you can not pay back to your creditors. Debt is where you make a promise to pay back money that is loaned to you. So essentially, bankruptcy is breaking a promise to repay money that you owe. To me then the answer to the question is B) No. I am not trying to judge anyone however, as there are good people who go through bankruptcy, sometimes due to no fault of their own due to medical situations. The main thing with bankruptcy however is to learn how you got to that point and change the way you are managing money so you do not end up in bankruptcy again.

    There is life after bankruptcy so changing your habits is an important step in the recovery process.

    • http://www.currentfinances.com Don Current

      I’m with you Jonathan. I think it really has to do with the person’s attitude about the matter. I’ve seen some people just walk away from a house they were in default on and just move on without a second thought. To me, that’s morally wrong.

      On the other hand there are people that genuinely want to not declare bankruptcy but just don’t see another way out of it. In that case I see it as a mistake to be learned from, not a morally wrong decision.