Granted every person's situation is different. If someone has racked up debt simply because they made uneducated decisions or hit the shopping malls when they knew they didn't have the money to pay the bill declares bankruptcy is it ethical?

Well, since we declared bankruptcy in the past, I have to say yes. As long as it is not abused and used over and over and you learn a valuable lesson and you take care of it all leagally.

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~Happiness is a large family~

I think it depends on the situation. I know someone who had no choice but to file for bankruptcy, their child was very ill and the medical bills were outrageous even after insurance. Bankruptcy was their only option.

If someone is just spending money like crazy with no intentions of paying it back, that is wrong.

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DS-16
DD-13
DD-5
DS-3

Depends. I've known of at least one person that I believe racked up the debt with the intention of declaring bankruptsy. But, this was under the "old" rules, and he was an unethical person in every other part of his life too. As long as it was not planned, and every attempt to avoid bankruptsy has been made, then I don't think it is unethical.

In that situation I would say no it is not ethical. If you choose to be irresponsible with your finances, you shouldn't expect to be bailed out when you get in over your head.

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Let us be silent that we may hear the whisper of God. - Ralph Waldo Emerson

with soucyx6 if you are going on your description it is unethical if there were other things going on illness job loss ect i think that it can be ok...

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SILENCE IS GOLDEN BUT DUCK TAPE IS SILVER.

I agree to some degree. I do believe that everyone is capable of making mistakes. I think that if a person tries every means that they can to pay off their debt and are still drowning in it then bankruptcy should be the last choice if all else fails. If that person doesn't get finacially educated after that and makes the same mistake again, well I have no pity. Bankruptcy and foreclosures are at an all time high right now.

It's a very gray area. I have been there. Some people have legitimate reasons (medical bills, job loss etc) but then you do have the other side(credit card abuse) but I say gray b/c what about the people that don't see any other way (at the time) than to pay their day to day expenses on a CC and then get behind on that.

Every situation is different.

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Life isn't about waiting for the storm to pass~ It's about learning to dance in the Rain

Yeppers...

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Amie

Mom and personal chauffer to a 12yo, 8yo, 4yo & 2yo boys.

Beware of gymnasts--may flip without notice.

As an attorney who practices bankruptcy law for both debtors and creditors I know all kinds of stories that fall on both sides and many in the middle.

I really think bankruptcy is only as ethical as the person declaring it. I have seen people sacrafice everything trying to pay their bills and when there is nothing left they file. I have seen people try to hide assets from a bankruptcy. there are people who use it as a debt managment tool -- CRAZY -- and others who just get sucked into the undercurrent of credit cards and cannot make ends meet any other way.

So I think its a valid option and useful tool if used the right way.

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Grace

Wife to Stoney

Mommy of Sarah (9), Hannah (7.5), and John(5)