I have heard that many people say that Bankruptcy represents a personal, even a moral failure. That only bad people file for Bankruptcy. Have you heard that before?

I heard that argument from Creditors supporting the changes in the Bankruptcy Laws.

The truth is that Bankruptcy Relief has its roots in the Bible.  The Old Testament has many examples of compassionate treatment of the poor and preservation of the family unit.  These goals were superior to the material concerns of repayment of debt.   Deuteronomy 15:7-10 provides: “If there is a poor man among your brothers…do not be hardhearted or tightfisted toward your poor brother. Rather be open-handed and freely lend him whatever he needs. Be careful not to harbor this wicked thought: ‘The seventh year, the year for canceling debts, is near,’ so that you show ill toward your needy brother and give him nothing. He may then appeal to the LORD against you, and you will be found guilty of sin. Give generously to him and do so without a grudging heart; then because of this the LORD your God will bless you in all your work and in everything you put your hands to.”  Good advice for the economic hard times our Nation is facing today.

It has been my experience that in twenty years of representing consumers and small businesses every client who filed bankruptcy was a ‘honest but unfortunate debtor.’  I am sure there are those who ‘work the system’ but they are few and most ethical, qualified bankruptcy attorneys can figure out who these people are to avoid representing them.  Bankruptcy attorneys are also officers of the court and required to either disclose their clients’ lies or withdraw from the case.


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