Weak Enforcement of the Bankruptcy Laws

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Weak Enforcement of the Bankruptcy Laws

In an article in The Business Journal Mukherjee tells of "A health club executive in Texas persuaded a bankruptcy judge that his Rolex watch was off-limits to the creditors because the watch was a part of his look and personality. Stripping it would make him feel naked" (69). They even let him keep it. This is the kind of thing that need to be dealt with. It just sends an image that the government and the courts want people to get away with bankruptcy fraud.

Bankruptcy is no new thing. There are some people who need it just to survive and there are others who take advantage of the way it works. When they do that, they are looking for a way that they can keep all their money but get rid of their debts. People think of many ways to take advantage of bankruptcy. Sometimes the FBI can't find all of the fraud and then the tax payers suffer. The people commiting the frauds are also making bankruptcy look bad. While in reality, it is one of the best ways for people to get back on their feet. More states need to focus on investigating their bankruptcy frauds and then prosecuting them.

John R. Roberts, a bankruptcy attorney, states that "bankruptcy is nothing more than a fresh financial start. It is designed to help those who are in debt beyond a reasonable means to pay" (online). This is only if the person in debt didn't get there through anything dishonest. People get in debt for a number of things like losing their job, accidents, and business failure. When that happens people have different options of bankruptcy or different sections of the banckruptcy ammendment to choose from. The most common is Chapter Seven. This section allows you to sell some of your assets to clear as much of the debt as possible. In most cases, it also permits you to keep your property. Chapter 13 is for those who are temporarily in debt. It helps to set up payments that are reasonable for the debtor. (online) Bankruptcy is a way for a person to regain their life. After getting so far in debt some people have no way out.

In an article published in Newsweek, "The Sorry Side of Sears", McCormick tells about a recent case involving Sears. Sears was using a credit card and issuing it out to anyone that would use it.

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