Question

Debate Ethical Dilemma/Boom in Busts: Good or Bad?

Discuss the pros and cons of bankruptcy legislation issues. What do you think about the prospects of changing bankruptcy laws? Do we let bankrupt debtors walk away or punish them

Answer 1

Pros of the bankruptcy legislation issues=

These laws facilitate the opportunity to the businessperson to avoid the financial liabilities in case the firm faces the financial difficulties

This is a good method of recovering businesses from financial problems

This ensures that the firms are still in business and thus facilitating the jobs and other benefits to the society

Cons of the bankruptcy legislation issues.=

Most of the poorly managed businesses can find it as an easy way out of avoiding financial burdens

This will be treated as the misuse of the public money

This will demoralize the other businesses which are trying to survive the financial difficulties

Changing the bankruptcy laws= In my opinion there is always an opportunity to improve the current situation for the betterment, These laws must also be upgraded to include the concerns of both the public and also the business organizations, there must be a proper balance between the financial liabilities and the procedure that has to be followed to file the bankruptcy and allowing it. Most businesses treat these laws to avid their financial mismanagement. The court must look at these practices and theses must be incorporated in the final policymaking.

Punish or walk away= It should be dependent on the initiatives taken by the debtor. If the situation could have been managed had the debtor managed the situation well, then the punishment must be given due to the ignorance and mismanagement of the debtors. If all the steps are taken by the debtor despite that the bankruptcy is unavoidable, then no punishment is required.