The “F” in Bankruptcy Alphabet is for “Failure” (and “Fresh Starts” in Bankruptcy)

F 2724770810_f84d80d958_t[1] is for Failure and “Fresh Starts” in Bankruptcy {Perhaps also for “Favorite”  because of all the articles I have written, this is my favorite”}

By Christopher C. Carr, Esq. Chester County bankruptcy attorney.

Tel: 610-380-7969 Email: cccarresq@aol.com Web: westchesterbankruptcyattorney.org

Many people in our culture still believe unfortunately that it is a mortal “sin” to declare bankruptcy; akin to a financial death sentence, to admitting failure as a human being and as a member of the larger economic enterprise. But in fact bankruptcy has been “built into” the US capitalist system since its beginnings with the Bill of Rights because it is essential to the very success of that model, which is in turn based on encouraging individual risk taking.

Being a success is a basic assumption of American life. We are taught almost from birth that at all costs we must be winner! But In fact, it is a harsh irony of life that success is built on trial and error and consequently upon failure. Some companies have even adopted corporate cultures which actually encourage failure so that employees will be willing to take risks and innovate.  See Why I Hire People Who Fail.

Our lawmakers from the very founding of our country have been mindful of the necessity to provide this “escape path for risk takers”:

The United States Constitution provides a method whereby individuals, burdened by excessive debt, can obtain a fresh financial start and pursue newly productive lives unimpaired by past financial problems. It is an important alternative for persons mired deep in financial difficulty.

The federal bankruptcy laws were enacted to provide debtors with a fresh start and to establish a ranking and equity among all the creditors who are clamoring for the debtor’s limited resources. Bankruptcy helps people avoid the kind of permanent discouragement that can prevent them from ever reestablishing themselves as hard-working members of society.

Source: Purposes, Benefits and Costs of Bankruptcy Disclosure pursuant to U.S. Code § 527(a)(1) & § 342(b)(1).

Some disagree with this proposition stating based on empirical findings that bankruptcy only helps about 2/3 of all who apply to get a fresh start and that is only because they find a steady income source.  See “The Failure of Bankruptcy’s Fresh Start”.  But for me, this only proves the point for i.) 2/3 is a pretty high rate of economic “resussitation”, ii) a study design like this just looks at a single point in time, it does not do follow ups to see what percentage ultimately do see improvement in their financial condition and iii.) how do you get people to pull themselves out of the economic mire (see quote above) unless society provides a safety net which is after all what bankruptcy really is? Not everyone will try and of those who do not all will make it but then there are no guarantees in life (or the law).

In my practice I represent many hard working small business people (from screenplay writers to truck stop owners) who are heavily engaged in the capitalist system. And what is capitalism at its core but the willingness of people to take chances in hopes of making money?  Someone–a small business venture–comes up with an idea for a business, obtains the financing and other myriad necessary resources to get that business up and running, strives to generate sufficient revenues to cover expenses over time, all in the hopes of making a profit from engaging in the business. At any point things may not work out as expected, causing the business to founder and ultimately sink.  Failure lurks in waiting at every corner!

Indeed some historians of note have argued that the American Revolution was in large part fought for debt relief:

The idea that debt is necessary for trade, and is to be forgiven liberally when necessary, is a key driver to the rise of our market economy. Americans fought to provide the same debt relief to everyone because we believe in equality and because bankruptcy protection takes the risk out of risk taking. Our historic willingness as a nation to forgive debt lies behind a good part of our prosperity. One good example is John Pintard, a state legislator and stockbroker, who was one of those who fell for William Duer’s financial scheme, which helped trigger the Panic of 1792, the nation’s first stock-market crash. Pintard ultimately landed in debtors’ prison in Newark. He got out of jail in 1798, and he filed for bankruptcy in New York in 1800. Among his many other post bankruptcy accomplismments, Pintard  founded the New-York Historical Society in 1804, and was a founder of the New York Bank for Savings in 1819.

In 1841, Congress passed a sweeping federal bankruptcy law that offered bankruptcy to everyone. Meanwhile, in 1831, the New York State Legislature abolished imprisonment for debt. Other states soon followed. Debtors’ prison was abolished, and bankruptcy law was liberalized, because Americans came to see that most people who fall into debt are victims of the economic cycle or misfortune like Pintard, and not of sloth, greed, or other negative personal attributes.

What would happen if there were no bankruptcy laws, no bankruptcy courts and no chance for people to obtain a fresh start?  Would people be as eager to innovate, to take chances and to possibly fail with no safety net to catch them? It is a fundamental premise of the capitalist system that they would not. That is why people who cannot pay their debts should not feel that they are ethically “challenged”, especially in this difficult economy, if they find they must seek the protection from their creditors for which our bankruptcy laws so prudently provide. For, failure is only the first step on the way to a fresh start!

Law Offices of Christopher C. Carr, MBA,  P.C., is a quality bankruptcy and debt relief practice, located in  Valley Township, west of Coatesville, Pennsylvania, where Attorney Christopher Carr, a Chester County bankruptcy attorney, who has over 30 years if diversified ;egal experience, concentrates on serving the residents of and businesses located within Western Chester County and Eastern Lancaster County, Pennsylvania, including the communities in and around Atglen, Bird in Hand, Caln, Christiana, Coatesville, Downingtown, Eagle, Exton, Fallowfield Gap, Honeybrook, Lancaster, Lincoln University, Modena, New Holland, Parkesburg, Paradise, Ronks, Sadsbury, Thorndale, Valley Township, Wagontown & West Chester,  Pennsylvania. If you reside or do business in the area and need assistance with a legal issue, please call Mr. Carr at (610)380-7969 or write him at cccarresq@aol.com today!  

I also provide Mortgage Modification Services.

©Christopher C. Carr, Attorney at Law, 2011, 2012, All Rights Reserved.

More attorneys playing the bankruptcy alphabet game at letter F (HEY GUYS WE ARE 25% OF THE WAY TO Z!!!):

Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell: F is for Family Farmer/Fisherman.

New York Bankruptcy Lawyer, Jay S. Fleischman: F is for Future Flow Agreement .

Northern California Bankruptcy Lawyer, Cathy Moran: F is for First .

Kauai Bankruptcy Attorney, Stuart Ing: F is for Foreclosure

Jacksonville, Florida Bankruptcy Attorney, J. Dinkins G. Grange: F is for Forms .

Colorado Springs Bankruptcy Attorney Bob Doig: F is for Foreclosure .

Los Angeles Bankruptcy Attorney, Mark J. Markus: F is for Forgiveness of Debt .

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26 comments on “The “F” in Bankruptcy Alphabet is for “Failure” (and “Fresh Starts” in Bankruptcy)

  1. […] Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA says F is for Failure . […]

  2. […] F is for Failure and Fresh Starts, says Christopher Carr […]

  3. […] For other F bankruptcy terms: New York Bankruptcy Lawyer, Jay S. Fleischman Jacksonville, Florida Bankruptcy Attorney, J. Dinkins G. Grange Northern California Bankruptcy Lawyer, Cathy Moran Los Angeles Bankruptcy Lawyer, Mark J. Markus Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell Colorado Springs Bankruptcy Lawyer Bob Doig Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA […]

  4. […] Failure Family Farmer/Fisherman Financial Fatigue First Foreclosure Foreclosure Forgiveness of Debt Forms Future Flow Agreement […]

  5. […] The “F” in Bankruptcy is for “Failure” (and “Fresh Starts”) by Christopher C. Carr, Philadelphia, PA […]

  6. Great post! Failing is just a part of taking risks…and bankruptcy shouldn’t be a bad word.

    • Thanks Jenny…so also is success. Thomas Edison had over 100 failures on the way to inventing the lightbulb! But as he said: “I am not discouraged, because every wrong attempt discarded is another step forward.”

  7. […] Failure Family Farmer/Fisherman Financial Fatigue First Foreclosure Foreclosure Forgiveness of Debt Forms Fraud Fraudulent Transfer Future Flow Agreement […]

  8. Gary Jemenez says:

    usefull information, thanks. hope you add some more posts soon.

  9. […] is for Failure Begets Success. F is for Family Farmer/Fisherman. F is for Financial Fatigue. F is for First. F is for Foreclosure […]

  10. […] Failure Begets Success by Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA […]

  11. you should add content more often great read, also like the look of the blog.

  12. Ola! Christophercarrlaw,
    Very interesting, With the tough economic climate these days, there are over 1.5 million people expected to file for bankruptcy this year alone. For many people the decision to file for bankruptcy is a hard one. However, it may be the best course of action for individuals given their financial situation. Unfortunately creditors often reinforce the many negative perceptions about bankruptcy. People associate the term bankruptcy with failure or just giving up. This is far from the truth. Bankruptcy allows individuals that are financially burdened to take control of their debts and legally deal with their creditors. Many will emerge from bankruptcy with a fresh start and a second chance to live debt free.
    Great Job!

  13. […] Failure Begets Success – Philadelphia Suburban Bankruptcy Lawyer, Chris Carr […]

  14. […] Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell Cleveland Area Bankruptcy Lawyer, Bill Balena Northern California Bankruptcy Lawyer, Cathy Moran Colorado Springs Bankruptcy Attorney Bob Doig Kauai Bankruptcy Attorney, Stuart Ing Jacksonville Bankruptcy Attorney, Monica D. Shepard Los Angeles Bankruptcy Attorney, Mark J. Markus Jacksonville, Florida Bankruptcy Attorney, J. Dinkins G. Grange Philadelphia Bankruptcy Attorney, Kim Coleman Downriver, Michigan Bankruptcy Attorney, Christopher McAvoy San Francisco Bankruptcy Attorney, Jeena Cho Wisconsin Bankruptcy Lawyer, Bret Nason Marin County Bankruptcy Attorney, Catherine Eranthe Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein Daniel J. Winter, Chicago Bankruptcy Lawyer New York Bankruptcy Lawyer, Jay S. Fleischman Livonia, Michigan Bankruptcy Attorney, Peter Behrmann […]

  15. […]  Failure Begets Success, Future Flow Agreement, Financial Fatigue, Foreclosure, Fresh Start, and Free Consultation Tags: Bankruptcy Alphabet Trackbacks (0) Links to blogs that reference this article Trackback URLhttp://www.losangelesbankruptcylawmonitor.com/admin/trackback/272775 Comments (0) Read through and enter the discussion with the form at the end Post A Comment / Question Use this form to add a comment to this entry. […]

  16. […] Failure Begets Success, Future Flow Agreement, Financial Fatigue, Foreclosure, Fresh Start, and Free Consultation […]

  17. […] Failure Begets Success- Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA […]

  18. […] considered it a fundamental underlayment of the freedoms that we all enjoy that in times of need a “fresh start” could be obtained. So they instituted for all of the people of our great nation within the United […]

  19. […] way?  Well, in one way or another, virtually all of us seek a bankruptcy in order to get a “fresh start”.  That is precisely what the law says it is there for.  Elsewhere, I argue that without such a […]

  20. […] the long haul, the consumer bankruptcy laws prove their worth. This writ large then is why the “fresh start” offered to debtors by our system of bankruptcy is a necessity to a healthy capitalistic system. […]

  21. […] Many people wish to avoid bankruptcy because of the social stigma perceived to be associated with “going bankrupt” even though it is perfectly legal and in fact is guaranteed by the US Constitution. […]

  22. […] Failure Begets Success Family Farmer/Fisherman Financial Fatigue First Meeting of Creditors Foreclosure Foreclosure Forgiveness of Debt Forms Fraud Fraudulent Transfer Fraudulent Transfer Free Consultation Fresh Start Fresh Start Fresh Start Future Flow Agreement Free Consultation Bankruptcy Attorney Fees Filing Requirements Fees Form 1099-C […]

  23. […]  Failure Begets Success, Future Flow Agreement, Financial Fatigue, Foreclosure, Fresh Start, and Free Consultation […]

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