Filing Bankruptcy in the United States is a legal proceeding that allows a debtor to sever the liability to certain financial liabilities. In short, allows people to get rid of debt without paying it. But, just because a person can file bankruptcy, is it okay to file bankruptcy?
I am often asked this question in the context of the morality of bankruptcy. Most people that are struggling with debt genuinely want to pay those obligations, but they are not able to, often due to circumstances beyond their control. When this happens, I am asked if it is okay to file bankruptcy. Well, of course it is legal to file bankruptcy. The current Bankruptcy Code went into effect in October 2005. Bankruptcy has been part of the American legal system as far back as 1898. The laws surrounding bankruptcy have changed several times, but the general premise of discharging debt has remained.
Prior to the enactment of bankruptcy laws, debt collection included much harsher measures including debt slavery or debtor’s prison. The concept of bankruptcy was intended to avoid those more punitive alternatives, with the idea of giving a debtor a fresh start. Now, this concept is not entirely new, it can be traced back to Biblical roots.
Maybe the best way to answer this question is to use the words of the Bankruptcy Court. Bankruptcy is for the honest but unfortunate debtor to get a fresh start. If you fit this description, then yes, it is okay to file bankruptcy. If you have questions about your personal situation, W M Law offers a complimentary consultation with an attorney. This consultation allows you to assess your situation and determine if Bankruptcy is an option for you. Please call our office at 913-422-0909. We have three conveniently located Kansas City offices.
By Addam Fera, W M Law Attorney