I dislike the whole idea of bankruptcy. I think people should be held accountable for there debt. They signed on the dotted line agreeing to certain terms. I think it just teaches people that they do not have to be responsible. Would people not learn more if they were held accountable. I think the word and process and court should be eliminated. I don't know the difference between personal bankruptcy and business bankruptcy but I am thinking it is the same idea but on a larger scale.

How do all of you feel about bankruptcy?

Do you agree with it?

Do you think it should exist?

Do you think one should exist but not the other?

Thank you for your time.

A great many bankruptcies are caused by medical expenses, which people have no control over for the most part. I think luck (mostly being born into a family with financial assets) plays a large part in whether or not people are financially stable. That said, it feels really unfair when a tenant's bankruptcy sticks you with unpaid rent.

I hope you didn't vote for our current president, because he's the king of using bankruptcy to stiff other people.

6x6 I'm not to sure that thinking is going to work. NEVER allow it?

I can give a specific example let me know what you think? A borrower is getting crushed by debt due to downturn in economy. Request is made of lender to renegotiate terms-- not amount owed mind you just the length-- redo. Lender insists they have a program to refi -- but you can't get on it until you miss a payment. So reluctantly you miss your payments---WHAM! Lender now reports you as delinquent on your loans. I ask you now that you are reported to the credit bureau as behind on 20+ loans-- WHO IS GOING TO LEND YOU MONEY? NO ONE.

So you're faced with this-- if you don't get the help with refi the WHOLE company will collapse. You will lose everything and all your employees will be out of work? Your properties will be shut down-- everyone evicted? Community loses taxes and there's no insurance any longer on the property's?

Thank you all for your responses and view points.

Quietly, I think they should not get in over there head in the first place.

Steve, that's another good point. I thought the bailout was a joke.

Still Learning, thank you for the business examples. I kind of feel like it should be the same idea as personal in that people (and businesses) should plan ahead and think, what if this or that happens, could I pay the debt. One of my points or thoughts is that it teaches them to not be responsible because they have a way out.

CDM, I can see others and your point on medical bills, but people could take better care of there health. I think instead of allowing bankruptcy the medical cost should be brought under control(not ACA). The cost of doctor and hospital visits should be a crime. As far as luck goes, I agree being born rich or into a wealthy family would definitely make a huge difference but that is no guarantee of someone being responsible. I was raised by a mother with a 6th grade education and on welfare. Moved all of the time. Lived very poor. I don't really know why but as a teenager I knew I did not want to live that way. I have always paid my bills early and paid off early. I have never been able to make as much money as others but I saved as much as possible and have never even considered filing bankruptcy. I would feel very ashamed and like a failure because of the way I disciplined myself to never ask anyone to pay my debt. It is my responsibility.

Myob, thank you for your example. I think any borrower should always think ahead about what could happen. If that thought says I could not pay the debt then don't borrow the money. That is the way I always tried to look at it. On that note I guess that is why I don't have what others have. I guess I am not willing to take that risk. I sort of hit on the why to this thought in the post above to CDM. As far as the lender goes, I think they should be punished or put in jail for that practice. If this missed payment idea was brought up to me I think I would have said no way because what is the difference in that and filling bankruptcy. Either way you have bad credit. I have never had a lot of money and definitely any employees but if I ever did I think I would apply the same principles as I use with debt. I guess it really boils down to me not wanting to live my adult live on welfare and wanting to be responsible. I have concentrated so hard for so many years now on being responsible with money and taking huge risk because it is the only way that I saw out of my childhood situation. I never had any teaching on finances or definitely investment so I knew no other way. Again I do realize because of my lack of education in this that I could be wrong in my perception which is partly why I asked the question.

The bankruptcy that applies to me the tenant had dismissed about a year later so I should be good to reinstate the garnishment.

6x6, for me too difficult to discuss this thoroughly in a short post, but I will say one thing....there should be some changes for the wealthiest who use it.

Example: Michael Vick was the highest paid football player in the country at one time. A year later he went bankrupt. I don't understand how someone with that much personal wealth should be allowed to take that benefit. How to fix this?....not sure but maybe force those who make over $10 million/year to put 10% (until they've built up a certain amount) in a bank account held in trust...and if they ever get to the point they are broke, at least their creditors would get 10% of what they are owed.

6 by-- if this person was kicked off the program they can't declare BK for another 5 or 7 years-- that's the great part of it. Next week we go to court with an X tenant who HAD declared BK but was kick off the court program-- now he wants another hearing since we are now re-garnishing. When your off the program your no longer protected.

We thought way ahead with these 24 loans. Refi was always an option-- until the day we needed to do it. The lender said we just don't want to do it. Don't forget there offer of "special program". We resisted 2 years-- 2 long years-- and finally gave in. When they reported us for being delinquent -- they also said-- "now you have to make up the payments" At that point I had enough of their BS. I said no I'm not playing this game. That's when I go to my atty-- the baddest BK atty in ATL. (and most expensive)

After the bank accused us (a VP of Chase) in writing of fraud to our atty we had them. My atty made mince meat of them. The properties that were pre 78 I let the bank have back- 9 I got back penny's on the dollar-- like 100K loans and I got the property back for 9800.00 the others I brought back at the courthouse steps for pennies with the tenants still mine and paying rent. It took the lender about 4 years-- all the time I was collecting rent and maintaining the property.

myob, I am not sure what you mean by kicked off the program. When I spoke with the lady at BK she said the woman filled chapter7 in 2016 and could not file that again yet but could file chapter13.

yes they can apply for the next level of BK. Our person as an example didn't file his tax returns-- for 3 years. He didn't apply for the different BK. Will he? I don't know. But we are there right now with our garnishment.

In your example-- sure they might file 13 but it has to be approved. Don't you think the chapter 7 people talk to the 13 people? You don't know they might be refused 13.