Overcoming the morality issue when filing bankruptcy

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Overcoming the morality issue when filing bankruptcy

For many of us the thought of filing for bankruptcy may not sit well with one’s morality. The concept is that you borrowed the money or took out the loan from the creditor and it is your moral responsibility to pay the creditor back rather than having the debt discharged in a chapter 7 bankruptcy or significantly reduced in a chapter 13 bankruptcy.

One must remember that the US bankruptcy law was created to provide protection to the debtor from the harassment and other tactics of the creditors. One of the requirements in a file for bankruptcy is to prove that the debtor is indeed insolvent. Insolvency means the debtor is unable to pay back the creditor. If you are truly unable to pay back your creditors, a moral issue should not arise.

However the bankruptcy questions still arise, I borrowed the money I should pay it back. If you are at a point where filing for bankruptcy is your only solution, you should not be thinking that you are doing an immoral act. Rather, you should consider the reasons that have created a predicament in which a chapter 7 bankruptcy or a chapter 13 bankruptcy is your only way out.

If you were to dwell on these bankruptcy questions, you will realize that the reason for your insolvency is usually due to extenuating circumstances that were most likely beyond your control. In most cases the debtor contacts a bankruptcy lawyer to explore the possibility of filing bankruptcy due to medical bills that they are unable to pay or a job loss or significant decrease in income. In fact medical bills are actually the number one reason for file for bankruptcy cases in the United States.

So with all this in mind, it will be easy to overcome any moral issue you may have for seeing a bankruptcy attorney about the possibility of filing for protection under the US bankruptcy law, when you stop to think of what is your reason for being where you are. Most likely you will realize that your predicament may not have been due to any fault of your own but rather a result of extenuating circumstances.

About the Author:
Jay King is a owner of BankruptcyIntro.com. We’ve all heard of large companies filing for bankruptcy or “going bankrupt” and most of us would think that particular company must be in trouble.
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