The word “bankruptcy” conjures images of failure, lack of resolve or quitting. The concept that one can be legally relieved of the ongoing obligation to repay validly-incurred debts seems somehow inherently wrong … that although you may have a legal right to do so, it just isn’t the proper thing to do.
On the other hand, we are all aware of leading American companies use bankruptcy system to modify binding and enforceable obligations to creditors and employees. Indeed, these large companies are even able to severely modify and, in some cases, drastically reduce vested retirement benefits to workers who planned their later years on the receipt of what was promised them by these same companies over decades of employment.
The underlying reason for allowing a reduction of valid corporate debts is to assure the future health of the company. The bankruptcy law presupposes at its core that unforeseen and uncontrollable changes in economic climate are inevitable and that not every business, credit or purchase decision will be correct. However, the continued financial viability of these retail, service, manufacturing, utility, automotive and banking entities conceptually outweighs the otherwise crushing weight of debt that threatens to strangle and potentially ultimately destroy them, and in the process stifle and eliminate or secretly curtail the value of the role those companies play in American commerce.
So, what about you? Why is bankruptcy considered prudent, an exercise of fiduciary responsibility and a mark of business savvy for these companies, but a struggle of conscience for you? Why do you consider it not right to reduce a debt you have incurred, instead of a “right” that will result in your family being stronger, and you more able to provide a stable and effective life for yourself?
Let’s be clear, bankruptcy laws do not provide unrestricted access to unlimited debt cancellation. Certain obligations are given preferred and “non-dischargeable” status, and fraudulent activity unitized with the sole intention of securing credit without any ability or intention to repay is not allowed. For instance, debts incurred within a short time of the filing of a bankruptcy petition are viewed with a more circumspect legal eye.
The take away? Just like those companies we discussed above, each of us has a right to a life free from the unending weight of high-interest debt that accrues at default rates that are nearly incalculable; uncovered medical expenses that were not planned for, and a myriad of other obligations that choke life from parents and families.
If we can help, contact Little Rock bankruptcy lawyer Greg Niblock at 800-844-8449. We believe in your right to make a fresh start.