Sure, I am a bankruptcy lawyer, why would I not be
We all should be, not just us insolvency professionals..
Why Thankful for Bankruptcy?
Because, in short, bankruptcy is good for the economy.
Because, starting over is a good thing to be able to do when a business fails.
Or a consumer.
Walt Disney is just one of many, later, successful businessmen who filed bankruptcy.
What if he were saddled with those debts? And could never get rid of them?
Could he have started the studio that still bears his name.
Where would we be without Mickey Mouse?
Megan McArdle agrees in her book “The Upside of Down”
Denmark is usually presented as a kind of small world socialist paradise, everyone is taken care of, no worries.
McArdle tells the story of the photographer who was doing well, expanded too far, as competition increased with better, cheaper digital cameras. He was over-extended.
In Denmark, he cannot file bankruptcy, and is stuck with his debts.
His creditors are not getting paid, either.
Like our current student loan crisis, whether Congress changes the law or leaves it the same, the 1.3 trillion dollars of student loan debt is not all getting repaid.
Treating it like other debts would help people start over, get back in the system, and be productive economically.
But I digress,
Bankruptcy is good for business, especially small business.
So How Does That Help Me?
So, you never filed bankruptcy. You never will, How does letting others get out of paying their debts help you?
We are in a big, global economy.
Everyone shut out of it by being saddled with old debt, is not buying new stuff, big like houses or cars, or boats, or little, like clothes for the kids.
Most tend to not try to make more money, if they cannot see a way to pay the debts they have. They do not take a chance on their next idea for a small business. Most bankruptcy debtors will never pay those bills they are discharging in bankruptcy, so it is not a question of paying for new stuff instead of not paying for old stuff.
Getting these folks back on their feet, in new jobs, starting new businesses, helps that global economy to which we are all connected.
One of the many great things about America is the ability to wipe out old debts and start over.
Just ask the President-elect.