Why is it legal for me to get out of paying back my debts?

That's a really good question and the answer is important. Bankruptcy laws are on the books to provide a fresh start so that individuals will continue to work hard, take care of their families, and contribute to their communities and society. In the long run, this philosophy saves tax payer money because self-sufficient peoples don't rely on governmental services.

In Dickensonian England, debtors were put in debtor prisons. This policy was totally counterproductive because if you're in prison, you can't pay back any debt or take care of yourself or your family. Learned helplessness results.

Our Founding Fathers saw a better way. They knew that if people were free from insurmountable debt, they would work hard instead of giving up. To guarantee a fresh start for all Americans, they mandated that Congress have the power to enact "uniform Laws on the subject of Bankruptcies throughout the United States" (Article 1, Section 8, Clause 4 of the United States Constitution).

Although it may seem counterintuitive at first, discharging your debts in bankruptcy actually helps society, in the long run.

More articles about Bankruptcy

What is Bankruptcy Law?

Begin learning about Bankruptcy here with a general overview and breakdown of options.

Bankruptcy Glossary

Demystify bankruptcy terminology with our helpful glossary.

Benefits of Chapter 7 Bankruptcy

Our overview of bankruptcy under Chapter 7 - discharge unsecured debts while preserving assets.

Chapter 13 Bankruptcy vs. Chapter 7

Our overview of bankruptcy under Chapter 13. Detailed comparison between Chapters 7 and 13.

Why You Cannot Lose Your Bankruptcy Case

What you need to do to win your bankruptcy case.

How to Keep Your House in Bankruptcy

The most common question asked of bankruptcy attorneys. Our guide reviews the challenges.

Browse Bankruptcy attorneys