At its base bankruptcy constitutes nothing more than a relationship between two persons. It is a function of the human interaction, “I give you this now and I expect to be recompensed for it later.” And the base of this interaction is an agreement between two human beings. (In legal terms, it is a contract.) One of the primary functions of government is to see that these agreements (these contracts) are adhered to in the absence of any other entity, other than those concluding the agreement, who can enforce adherence to the terms. In Lockean terms, if there is no third party to resolve disputes regarding human interactions, civilization, as we know it, falls apart. So bankruptcy and the laws around it need to be understood not as intrusion on the basic lives of human beings but, rather, as an attempt to manage fundamental human interactions that, if left to their own devices, would make society impossible.
I honestly believe that declaring chapter 7 bankruptcy, which got me out of a very precarious and unhealthy living arrangement, saved my life. And in the 11 years since then, I never had cause to regret it. And now, I live a life with minimal debt (most of it is student loan) and my credit score is astoundingly good and constantly gets better. It was a very rough time in my life and forced me to make a lot of really difficult decisions very quickly, but in the end it worked out. I wish more people understood how empowering it can be, And while individuals may have some responsibility for the situations that lead to bankruptcy, let’s be clear that the real blame falls on the predatory nature of banks, credit card companies and other lenders, as well as outrageous medical costs, educational costs, and so on.
At its base bankruptcy constitutes nothing more than a relationship between two persons. It is a function of the human interaction, “I give you this now and I expect to be recompensed for it later.” And the base of this interaction is an agreement between two human beings. (In legal terms, it is a contract.) One of the primary functions of government is to see that these agreements (these contracts) are adhered to in the absence of any other entity, other than those concluding the agreement, who can enforce adherence to the terms. In Lockean terms, if there is no third party to resolve disputes regarding human interactions, civilization, as we know it, falls apart. So bankruptcy and the laws around it need to be understood not as intrusion on the basic lives of human beings but, rather, as an attempt to manage fundamental human interactions that, if left to their own devices, would make society impossible.
I honestly believe that declaring chapter 7 bankruptcy, which got me out of a very precarious and unhealthy living arrangement, saved my life. And in the 11 years since then, I never had cause to regret it. And now, I live a life with minimal debt (most of it is student loan) and my credit score is astoundingly good and constantly gets better. It was a very rough time in my life and forced me to make a lot of really difficult decisions very quickly, but in the end it worked out. I wish more people understood how empowering it can be, And while individuals may have some responsibility for the situations that lead to bankruptcy, let’s be clear that the real blame falls on the predatory nature of banks, credit card companies and other lenders, as well as outrageous medical costs, educational costs, and so on.