Is It Unethical to File for Bankruptcy?

Is It Unethical to File for Bankruptcy?

by King Law Firm | Easy Listen Option

Is It Unethical to File for Bankruptcy?

Even though bankruptcy is a viable and logical option to deal with insurmountable debts, some debtors feel that it is unfair or unethical for them to choose this path. They feel strongly that if you borrowed money for something, then you are obligated to pay it back, yet at the same time, they recognize erasing their debt is impossible given their circumstances. If you face a similar situation, reach out to an experienced North Carolina bankruptcy attorney to learn more about your options for dealing with debts.

The Ethics of Bankruptcy

Keep in mind is that it is rare for a person who can afford to pay their debts to file for bankruptcy anyway to take care of them. The reality is that debts that are discharged in bankruptcy would never be able to be paid back anyway because the debtor would never have enough money to pay them off. For example, let’s say an individual has a salary of $40,000 each year. They owe $55,000 in student loan debt and $20,000 in high-interest credit card debt.  It’s highly unlikely that the debtor can pay off their debts anytime soon, barring an extraordinary event like receiving a significant raise, securing a higher paying job, winning the lottery, or receiving an inheritance.

Bankruptcy is a legal option for debtors to either reorganize their debts to make them more manageable or get out from under the weight of their debts in order to start fresh. It is considered illegal, however, for someone to be dishonest about their eligibility for bankruptcy. That being said, if the law allows an individual to file for bankruptcy in order to get out of crippling debt that they will never be able to repay, they shouldn’t feel guilty about choosing this route. By working with a knowledgeable North Carolina bankruptcy lawyer, they can determine if they qualify to file for bankruptcy, and if Chapter 7 or Chapter 13 would be the best option.

The Reasons That People File for Bankruptcy

As your North Carolina bankruptcy attorney will tell you, people file for bankruptcy under many different circumstances. Some have seen the writing on the wall for a long time, while others had something tragic and unexpected to happen to them. Reasons for filing for bankruptcy include:

  • Losing a job
  • Legal fees from protracted divorce proceedings
  • A sudden death in the family of a significant breadwinner
  • An extended stay in a hospital

Discuss Your Financial Situation with a North Carolina Bankruptcy Lawyer

If you are finding it difficult to pay your debts, filing for bankruptcy is ethical, legal, and may be the best option given your situation. King Law Firm is a member of the National Association of Consumer Bankruptcy Attorneys and has a fantastic track record for assisting individuals and couples from all walks of life recover financially through bankruptcy filings. Call (800) 635-1683 or use our convenient online contact form to receive your free consultation today with an experienced North Carolina bankruptcy lawyer.