Originally Posted by
kingairip
Well...let's see. It's obviously good for the creditors in the bankruptcy and the reorganized company. If it wasn't, it wouldn't have been approved by the federal judge overseeing the reorganization, smart guy.
No. The point of bankruptcy is that "it gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt." But, don't take my word for it, those words are from a 1934 Supreme Court decision.
Yeah that might have been a good argument in 1934 after the stock market crashed. Now it is just a "business decision" for those who don't think they should ever be held responsible for poor decisions on their part (both individuals and corporations). I have come across too many of my fellow employees who are capable of paying their debts but choose to conduct themselves in ways that would have been considered unethical in 1934. Don't get me wrong, bankruptcy is a tool that should be reserved for those "truly in need" of a "new opportunity."
The Oscar
The Oscar