Is it immoral to file Bankruptcy? Am I wrong to try to avoid paying my debt?
Is it immoral to file Bankruptcy?
Homeowners and individuals in debt often feel that it is "wrong" or "immoral" to file a Bankruptcy and "cheat" their creditors. There are no moral or ethical issues in filing a Bankruptcy case, just as there are no morals or ethical issues in the contract you entered into with your credit card company or mortgage lender. United States law clearly states that a credit card company or mortgage lender may contract with you to adjust its interest rates, charge you late fees, over the limit fees and other penalties If you are late in making a payment, the law allows your creditor to call you numerous times a day, use a collection agency to harass you, or sue you in court. If the creditor obtains a legal judgment against you, the law allows the creditor to freeze your bank account, garnish your wages, repossess your car or sell your home in foreclosure. The United States law also enacted the U.S. Bankruptcy Code, which prohibits creditors from collection activities, including lawsuits, wage garnishments, collection calls, collection letters, bank restraints, foreclosures or repossessions. The same U.S. Bankruptcy Code allows eligible debtors to eliminate their debt to creditors. Even the Bible provides for some discharge of debt. "At the end of every seven years you shall grant a release of debts. And this is the form of the release: every lender who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord's release" (Deuteronomy 15:1-2).
Am I wrong to try to avoid paying my debt?
Most of our clients have been trying to pay their debts for years. In most cases, our clients have experienced loss of employment, divorce, or a serious illness. Most of our clients come to Bankruptcy after borrowing or extinguishing their pension plans, IRA's and retirement accounts. Many clients have been living off of their credit cards (and encouraged to do so by their credit card companies) while they have undergone these periods of economic struggle. Most clients who file for Bankruptcy are honest individuals who have been trying to support their families and home through difficult times of loss of employment, illness, divorce and other personal hardships.
Additional resources provided by the author
Please see my website for further articles and FAQs regarding Chapter 7 and Chapter 13 Bankruptcy cases.
Our Rating is calculated using information the lawyer has included on
their profile in addition to the information we collect from state
bar associations and other organizations that license legal
professionals. Attorneys who claim their profiles and provide Avvo
with more information tend to have a higher rating than those who do
What determines Avvo Rating?Experience & background
Years licensed, work experience, education
Legal community recognition
Peer endorsements, associations, awards
Legal thought leadership
Publications, speaking engagements
This lawyer was disciplined by a state licensing authority in .
Disciplinary information may not be comprehensive, or updated. We recommend that you always check a lawyer's disciplinary status with their respective state bar association before hiring them.