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    Categories: General

Is Bankruptcy Ethical?

For many people bankruptcy creates a moral dilemma. Many of us are taught to always repay our debts. Sometimes, bankruptcy lawyers dance around this issue by pointing out that hundreds of thousands of people file bankruptcy each year, including people like Walt Disney and Abraham Lincoln.

This argument lacked moral conviction when you were a child (“But, Mom, Jimmy and Freddy get to stay up past 9”), and the argument lacks moral conviction now. Just because an action is commonplace does not mean that the action is ethical.

Instead of passing judgment on yourself, maybe you should ask yourself some questions. Why are you in the position to consider filing bankruptcy? If you are like most people, the reasons are probably beyond your control: unemployment, illness, death in the family, etc. And what do you risk losing if you don’t file bankruptcy? Maybe your family’s home, maybe your close relationships, maybe even your health. Don’t you have an ethical obligation to protect all those things?

Most importantly, never confuse “discharged” with “disappeared”. Even if a debt is discharged, you can still pay some of it or all of it. The moneylenders will just no longer be able to take action against you to collect the debt. Any repayment occurs on your terms and in your time frame.

If you are experiencing an ethical dilemma, the most important thing you can do is talk to someone. The professionals at Henley and Henley, P.C. understand all the ramifications of a voluntary bankruptcy petition, including the ethical ramifications. Call today for your free consultation.

Chris Ebert:
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