I don't believe in bankruptcy. If you incur debt, you should pay it off. However, I find blatant Republican hypocrisy in the new bankruptcy rules passed by the Senate.
First, consider that the vast majority of individuals and families filing for bankruptcy truly need the relief due to hardships imposed by medical conditions, where medical insurance won't even address. And it's estimated that 90% of American bankruptcies are the result of such medical emergencies, job loss, divorce, or death of family members.
I’ve been doing research on families in financial trouble for more than twenty years to learn how many people were abusing the bankruptcy system. My colleagues and I did a really extensive analysis and learned that families turn to bankruptcy not because they want to find a way not to pay, but because they are desperate. More disturbing, we released a study earlier this year that revealed that over half of bankruptcies are in the aftermath of medical emergencies.
I never wanted to get involved in politics, but the bankruptcy bill now moving on a fast-track through Congress isn’t fair. It beats up the average family already staggering under the weight of bad luck and huge debts, while it lets real abusers go free. That appears to have been the idea from the start.
Again, I haven't studied the legislation in detail, so I can't say if I'm vehemently opposed to it. But, make no mistake about it, it's blatant Republican hypocrisy, as has come to be expected, to serve corporate interests and the grubby lobbyists that wrote this deal. See, Republicans believe big special interests like banks and credit card companies shouldn't be shorted, but by the token that they didn't address loopholes for the wealthy folks elude paying their debt, shows they have no regard for fleecing taxpayers and working Americans.
There's a larger thread of hypocrisy that streams around this controversial issue, that is the dichotomy between worker and proprietor, which in the blue collar industrial era were vastly different, but now in this "free agent nation", where many have chosen (or been forced) to kindle the entrepreneurial spirit and the rules have indeed been turned upside down. Starting and growing a business is fraught with failure, many a business goes sour, and the starters regroup and rebound, often using bankruptcy protection to buffer them from landing in a spot where their prospects for economic recovery would be most dismal. So, why are the rules harsher for wage workers, who now are at the mercy of turbulent forces totally out of their control than wild eyed speculators, who hope to carve out economic success via thier own business venture, but are near immune to ramifications of non-debt payment? Seems to be a giant divide, that again, favors the privileged, the elite, the well-heeled over the working stiffs.