We’ve established that bankruptcy and failure are in no way synonymous. So, how does it work? How can bankruptcy be used to get on the path to financial and personal success? To better understand it, let’s break down bankruptcy and discover what it’s all about.
Leading Financial and Family Law Attorneys
Fortunately, the days when Americans could be imprisoned for failure to pay private debts is long gone. That’s good, since the average American had $6375 of unpaid credit card debt in 2017 – over $1 Trillion in total debt.
It was common for those who ran the debtor’s prisons to charge their prisoners for room and board, adding to the debt they were attempting to work off. This effectively created a self-perpetuating debt cycle, trapping those that fell into it in indentured servitude – what we would call slavery.
Humans have a long and complicated history with debt. It’s only recently that bankruptcy has become a widely available option. Did you know that credit and debt actually predate money itself? In his book Debt: The First 5000 Years, David Grabel takes a deep dive into the history and consequences of debt and credit for human civilization.
The APEC online business dispute resolution program, while innovative, is not unique. Several other online business dispute resolution programs are either under development or already in use around the world. Two companies in this field of particular interest are Equivant and Court Innovations.
According to data submitted by the US to the APEC forum, 2017 will see 942 million e-commerce business disputes. (1) According to an article by David Dodwell in the South China Morning Post, these disputes involved, on average, entities in six different nations with six different legal systems, and therefore made it necessary for the parties involved to hire six different lawyers to represent their interests.
Alternative Dispute Resolution, or ADR, is a set of practices designed to resolve disputes between individuals as well as businesses without the need for litigation. Since it avoids the courtroom, ADR tends to be faster and cheaper than litigation, and also offers the benefit of confidentiality.
A debtor and creditor workout, or non-bankruptcy workout, is an agreement negotiated between you and your creditors on how to settle your debts without bankruptcy. This type of debt modification allows debtors to restructure part or all of their debt, while avoiding the disrepute of bankruptcy.
When people discuss bankruptcy, it’s almost always with a negative connotation. They see it as a failure, as something to lament. But what about its advantages? When handled properly, it can be the first step along the path to financial success. Wouldn’t the greater failure be to not declare bankruptcy, and continue in a unsustainable financial condition, making no progress toward solving any problems?
There are certainly situations where an individual or business is too far underwater to expect a workout to save them from bankruptcy. In these cases, attempting a workout would likely just waste time and delay the inevitable bankruptcy filing.