Bankruptcy

  • Thread starter Thread starter Kendy
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Not that I know of. I filed for bankruptcy in 2004 and have not been told that I could not do it. I have recovered almost fully from the
bankruptcy. But for me, it was a good thing, and I don’t regret it.
But a person should take into all into consideration before filing
for it. Bankruptcy is a last resort, and if you can avoid it, please
do so. For me, it was the only answer.
 
IMHO bankruptcy is stealing. So, its breaking one of the big 10.
 
OK, we’ve heard a personal opinion here about ‘stealing’. It remains to be seen what the authentic Catholic teaching is. Opinions are only opinions. . .
 
I guess that means that in the parable where the guy was let out of a 10,000 talent debt was stealing too. :hmmm:
 
There are a lot of ethical considerations for filing bankrupcy.

For example, I know someone who filed bankrupcy because they had maxed out all their credit cards on luxury items. In this case I considered it stealing. They could have paid back the sum by adjusting their life style.

In another case bankrupcy was declared because the women had breast cancer and the medical bills were more than they could handle.

In one case someone declared bankrupcy and years later went back to their dentist and paid the amount owing when they declared bankrupcy.

The church does not have a specific teaching on this issue for obvious reasons. The individual must decide the ethical choice based on their situation.

Someone once left me with a bad debt of $15,000. I was so thankful when years later they came back and paid me.

There is also a difference between someone forgiving your debt voluntarily (as in the 10,000 talent) and someone deciding that they are forgiven on their own.

Just because something is legal does not make it moral.

If one chooses to file bankrupcy I think the moral obligation to pay back when able still exists.
 
There are many reasons for filing bankruptcy. The reason would determine the morality of filing for bankruptcy.

Many people get into financial difficulty through no fault of their own. Catastrophic illnesses and failed business are two very common legitimate reasons. Filing bankruptcy because you lived beyond your means is immoral. I would consider that stealing.
 
Trelow said:
Good ol’ Catholic Encyclopedia.

newadvent.org/cathen/02254a.htm

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Actually, I have another thought about this. Let’s say it is your fault. Let’s say it is the person’s fault because they lived beyond their means, mismanaged credit cards, or whatever. What if afterwards, they realized, they had dug themselves beyond what the could get out of. Is it stealing to say, I have caused damaged beyond what I can repair?

Kendy
 
Kendy said:
Actually, I have another thought about this. Let’s say it is your fault. Let’s say it is the person’s fault because they lived beyond their means, mismanaged credit cards, or whatever. What if afterwards, they realized, they had dug themselves beyond what the could get out of. Is it stealing to say, I have caused damaged beyond what I can repair? Kendy
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You may have no choice but to file bankrupcy in this case. However, although the legal obligation no longer remains, I think that the moral obligation still exists to those to whom you harmed. And even if it is a big credit card company the obligation still exists because you have passed that harm to many other people. If you were ever to have sufficient money to pay back I think it would be your obligation to do so verses going on to enjoy luxury.

I have had people file bankrupcy on me. One came back and paid. If you have ever been on the receiving end of a bankrupcy and it has really harmed you financially you may think differently of the morality of it.
 
amills said:
You may have no choice but to file bankrupcy in this case. However, although the legal obligation no longer remains, I think that the moral obligation still exists to those to whom you harmed. And even if it is a big credit card company the obligation still exists because you have passed that harm to many other people. If you were ever to have sufficient money to pay back I think it would be your obligation to do so verses going on to enjoy luxury.

I have had people file bankrupcy on me. One came back and paid. If you have ever been on the receiving end of a bankrupcy and it has really harmed you financially you may think differently of the morality of it.
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Thanks.
 
As one who was forced in bankruptcy by circumstance (pro-longed unemployment and being disabled) and losing my house and all retirement savings in the process, it help me get back on a course where my SSDI can almost support me & my wife. She still does not have health care.

Using bankruptcy in cases like mine is morally acceptable. That is why it is there.

Using bankruptcy to acquire items for nothing is wrong and a good bankruptcy court should catch this and require the sale of the goods acquired.
 
Just wondering if anyone thought that it is our society that
allows" credit. I.E. The Bible does not say we MUST have a house… PLUS, isn’t buying ANYTHING on credit a form of coveting? Wanting something to which we cannot buy?.. so “society” come up with “credit”.

Society runs on “credit”. My opinion, the only difference between now and the dirty thirties is the availability of credit.

No credit = out of work business and people.

Perhaps “any” form of “credit” is a sin? Thoughts?

Look at it this way - prolonged sickness, no job …whatever…that causes “bankruptcy” is no excuse because if one just bought, used and possessed what they could with “cash” - then those circumstances would not cause bankruptcy.
 
malachi_a_serva said:
PLUS, isn’t buying ANYTHING on credit a form of coveting? Wanting something to which we cannot buy?.. so “society” come up with “credit”.
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Credit certainly can encourage covetousness, but all use of credit does not necessarily stem from it.
Perhaps “any” form of “credit” is a sin? Thoughts?
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I think it gets down to the issue of prudence. There are times when it can be very prudent to borrow money, even if the ultimate outcome is uncertain. Some use of debt is quite imprudent, but not all use of debt is.
 
Credit card companies are generally unsecured creditors in any bankruptcy filing, so in a Chapter 7, they recover nothing. However, it doesn’t bother them too much, since they make such a bundle of profits on interest and late fees they are still happy!

Now, people who pay off their balances every month are known in the trade as “deadbeats!” No profit there.
 
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