Is there a moral issue with bankruptcy?

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DENNYINMI

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I apologize if this would have been better placed in the social justice forum, but since this relates to “morals”…I have a question.

My current association fees for the MI condo I live in will be well over 400$ with the bulk of burdon on the homeowners within the association that have not gone into foreclosure.

Catholic catechism tells us we have moral obligation to debt, and Our Lord says we must render unto Ceaser those things which are Ceasers’ and unto God those that are Gods’

But looking at my budget, this “fee” is well beyond my means now…and a re-organization with a chapter 13…(attempt to pay back)…will need to take place to catch up what I can no longer maintain.

I do not see anyother way out.

I may be one of the ones that needs to “walk away” from this condo…my situation in the future, even with catch up with back payments, will be similar to the one I am in now…

Should I work harder? Another job?

I am an RN…but the costs here are well beyond a single persons means.

Would it be sinful to recognize the expectations financially in “staying” here, or recognize the moral obligations in paying back debt?

I am NOT looking for an easy way out.

But I am seeking the moral/right/Catholic way of interpreting this financial dilemma, and hoping that persons with no legal stake in my personal dilemma, would please shed some light on this.

Thank you!
 
DENNYINMI said:
I apologize if this would have been better placed in the social justice forum, but since this relates to “morals”…I have a question.

My current association fees for the MI condo I live in will be well over 400$ with the bulk of burdon on the homeowners within the association that have not gone into foreclosure.

Catholic catechism tells us we have moral obligation to debt, and Our Lord says we must render unto Ceaser those things which are Ceasers’ and unto God those that are Gods’

But looking at my budget, this “fee” is well beyond my means now…and a re-organization with a chapter 13…(attempt to pay back)…will need to take place to catch up what I can no longer maintain.

I do not see anyother way out.

I may be one of the ones that needs to “walk away” from this condo…my situation in the future, even with catch up with back payments, will be similar to the one I am in now…

Should I work harder? Another job?

I am an RN…but the costs here are well beyond a single persons means.

Would it be sinful to recognize the expectations financially in “staying” here, or recognize the moral obligations in paying back debt?

I am NOT looking for an easy way out.

But I am seeking the moral/right/Catholic way of interpreting this financial dilemma, and hoping that persons with no legal stake in my personal dilemma, would please shed some light on this.

Thank you!
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Well, here’s the thing. You’re not catching your lenders by surprise. They knew when they made the loan there was at least a small risk of default. And it’s not as if you walk away scott-free – you lose a lot in the bankruptcy process. If nothing else your credit is trashed and worseless for 10 years (and this is a good enough reason to avoid it).

Morally speaking, bankruptcy is a valid way for people to escape debt with dignity. But it should probably not be used as anything but a last resort.
 
Can you take on a roommate? Then that person can pay rent to you, plus 1/2 of utilities.

Is it $400 per year, or $400 more per month?

If it is per year, see if you can pick up an extra shift or 2 to earn $400. If it is per month…look into the roommate idea.
 
For those who find themselves in circumstances beyond their control, bankruptcy is not necessarily immoral.

For those who purposely ran up debts without regard to how they would pay them back, bankruptcy may be immoral and akin to theft.

You seem to fall in the first category. Try other things first, such as taking a roommate, getting another job, selling the condo, etc. But, if you have no way to sell and no way to pay, then begin to look at other options.

Talk to an attorney.
 
SW85 has a point: both lenders and borrowers accepted risks on both sides while making the contracts in good faith. It sounds like conditions have changed significantly since you made the contracts. It sounds a bit drastic to go into bankruptcy for $400/m though. The roommate idea is a good one.
 
You said it correctly : I am NOT looking for an easy way out.

The key is treat your neighbor as yourself, so if you made reasonable attempts to uphold your obligation then you are morally neutral, while those who take advantage of a planned bankruptcy are intently shorting the obligation to their neighbor. FYI - one way to treat your obligation better is to inform (communicate) them a bankruptcy is likely, pending, or inevitable
 
I used to think filing bankruptcy was a sin, then I heard someone talking about it on television. He talked about how that in the contract it says that If you don’t pay, your home/condo/car(etc) goes back into possession of the person who financed it. While it would be better to pay it, and rightly if you can you should, filing bankruptcy is not a sin. They are still getting what the contract says, while not the money they rightly would want, they are getting the alternative which is the original possession.
 
I was so excited to see the responses, obviously someone can be consumed with this, and I feel alleviated, your responses are in a way consolation, and I thank you!

Yes, the association fee…(not including mortgage) will be over 400$/month…it is so high, as I believe the association is attempting to offset those homes that went into forclosure within the complex.

The room-mate idea hit my heart like a rose from heaven.

I could think of many persons…(as I have met them in the faces of the social suffering I see in the hospital)…that would love to live here.

The “charitable” aspect of this idea sits well with me…

The more I think about this…it just might be the “best” answer.

Thanx!
 
My mom used to say a problem shared is a problem halved! It’s good to see some of the solutions help you. Good luck!👍
 
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