Morality of Bankruptcy

As a New Jersey bankruptcy lawyer, I hear the following multiple times a week: “I tried my best to repay the creditors. I felt that I had no other choice. If I hit the lottery tomorrow, I will repay all my creditors”. Most people who file for bankruptcy are honest people who feel bad about not being able to repay their debts. Many of these people feel that bankruptcy is immoral and they are doing something wrong. They wonder about the moral implications of filing a chapter 7 bankruptcy. As an attorney, I address this issue by noting a few points:
1. You must weigh the protection of your creditors versus the protection of your family and home. When you incur debt, you promise to repay your creditors. When you have a family, you promise to support them. There are circumstances that sometimes arise in life which make it impossible for you to keep both promises. You are forced to choose one or the other. When you file bankruptcy in the New Jersey court and discharge your debts, you can always voluntarily repay the debts at a later time.
2. The bankruptcy laws were created by Congress to help you! They are not meant to help you cheat anyone. They are in place to help you get a fresh start.
3. The credit card companies charge extremely high interest rates. You have probably already repaid your credit card debt through these high interest payments and penalties over the years. If the credit card companies wanted to help you avoid bankruptcy, they would reduce the interest rate or allow you to defer payments. Instead, the credit card companies continue to charge high rates. They will simply write the debt off if you file for bankruptcy.
4. Voluntary bankruptcy in the United States was established by Congress in 1841. Some of the terms were drawn from religious texts. The Old Testament (Deuteronomy) and the Quran allow debtors an opportunity to have their debt forgiven.

Filing a chapter 7 bankruptcy in New Jersey is a personal decision, not a legal one. The above considerations should make your decision an easier one. As part of your consultation, if you want to discuss the morality with us, you are welcome to do so. We will do all that is necessary to help you make an informed decision.