Many want to use the law surrounding bankruptcy to avoid paying their debts. In the long run, though, what does it get you besides a bad reputation? People who have such a track record are tainted and may find getting loans and things from banks more difficult if not impossible. Smart entrepreneurs use bankruptcy because they benefit from it when they move money into positions that cannot be touched. That is not correct.
Some billionaires have risen above others by avoiding paying contractors and others who have supplied them with goods, such as buildings or vehicles. They moved their money into trust accounts or created offshore accounts where it was depleted over time. Some also use a spouse or partner to gift them money while their business was in operation.
The problem is that they have bankrupted others who then refused to pay. Typically these are the contractors and their subcontractors which usually involve small family businesses that cannot bear heavy losses.
Money is a concoction for power and some think the world owes it to them so they don’t care who they hurt in their race for the most wealth. So how does the little guy avoid going bankrupt?
Years ago this was a problem I faced when a change in Australia’s economic security caused an inevitable depression to hit my business. However, it was accentuated by a breakdown of the marriage and three teenage children who were dependent on me. The situation was extremely serious since he owed money to many that he could not repay.
Working my way through it was the first step. Getting a job that took me to the interstate and gave me the opportunity to avoid debt collectors and others allowed me to pay off all debts for several months. Because I did them well, no one persecuted me. That is probably the best lesson one can learn from being honest.
My father raised me with this thought “if you never tell a lie, you won’t get in trouble”. To me bankruptcy when one could and should reimburse people is a lie. The recipients of my business were honest, hard-working and responsible people. What right does anyone have to deny them their just reward?
Before filing bankruptcy, think about the consequences. If everyone stops paying their bills, the world of finance will also stop. Although money is an invention, it is the foundation on which the World Order is based. If it falls apart, so does everything about our civilization. So instead of bankruptcy, choose a better way and pay off the debts, even if it takes months to do so.
