America’s Secret Weapon
I often listen to NPR in my car going to and from work. The other day I listened to a story of a family that filed bankruptcy during the peak of the great recession several years ago. Like many families, they struggled with the decision to file bankruptcy. They operated a family owned business that had been in the family for over 60 years. Their business, like most businesses in the country, was unable to operate due to lack of money (cash flow) and the inability to borrow money from the banks. They were prepared to close their doors completely.
Instead of closing, they filed a bankruptcy case. The bankruptcy allowed them to work out new payment terms with their creditors while giving them time to get back on their feet and make the business profitable again. Today, their bankruptcy case has been completed and the business has emerged from the bankruptcy profitable and viable for the future. The bankruptcy laws turned a time of doom and despair into one of hope and rehabilitation.
In America, our laws give us all the opportunity to reorganize by using the bankruptcy laws. The bankruptcy laws are there to help both people and businesses. Without bankruptcy, the family business would have been lost forever. The bankruptcy laws are a safety net to catch us when we fall so they we do not become forever destitute.
Is Bankruptcy America’s Secret Weapon? Many countries around the world are creating laws similar to our Bankruptcy laws. Giving your citizens a chance to get out from under debt, allowing businesses to stay operating, is all good for your country. Bankruptcy laws allow us to hope and dream again. It is a secret weapon and its positive impact is much greater than we all think.