Question

aBankruptcy: Moral, Amoral, or Immoral? Is it unethical to avoid paying one’s debts by going into bankruptcy? Does a person have a moral responsibility to pay his or her debts? Discuss in 250 words

Answer 1

If we consider bankruptcy law, it is difficult to file for personal usage. But due to the stigma, it is quite impossible for debtors as they started feeling shame and treat this as failure in case of bankruptcy petition filing. Thus, bankruptcy is a public matter and cannot be avoided. The consequences from bankruptcy are serious such as – new debts have higher interest charges, imperfect credit ratings for certain period or may not get new job or not hired by the employer. Hence, there is a trade off in bankruptcy law due to the interest of debtors as well as the creditors, ethically. However, the bankruptcy law tries to balance the interest, but the debtor prefers to declare as bankrupt to avoid paying the debt though there may be various other ways to pay the debts. This ends up in ethical bankruptcy. Bankruptcy is moral, amoral or immoral, is purely based on the reasonable ways. Bankruptcy law defines the way income, expenses and debt can be evaluated to determine the extent of bankruptcy of an individual. In practical sense, justified bankruptcy is ethical whereas on theoretical terms it is unethical.

On the closing note, if we look around the surroundings, there are various kinds of people and their conditions, how they perceive the good or bad, what is wrong or right but there is always some part of humanity associated. However, it does not say anything about the truth but purely being judgmental. So, the same applies to the ethical or unethical bankruptcy.