ARGUMENTATIVE ESSAY
GOVERNMENT

 

 

Should Bankruptcy be made more difficult in order to discourage overspending?

 

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Should Bankruptcy be made more difficult in order to discourage overspending?

Bankruptcy applications should be more difficult and strict to discourage overspending among individuals and organizations. The ease of filing for bankruptcy - and avoiding the repercussions of having to pay debts - fosters and encourages the culture of spending more than the level of income or earnings among organizations and individuals. For irresponsible individuals and organizations, the availability of the option of filing for bankruptcy and avoiding the liability and responsibility to repay debts constitutes undeserved immunity to such liability and responsibility. Increasing the difficulty of filing for bankruptcy would discourage overspending through promoting caution and restraint in the behavior of spending more than the level of earnings and income, among organizations and individuals. The success of filing for bankruptcy would no longer be certain: it would increase the level of risk for organizations and individuals in overspending, thus restraining such behavior. Making bankruptcy applications more difficult would ensure successful bankruptcy applications for individuals and organizations with genuine financial difficulties only (Martin & Tama, 2008, p. 113-127). It would promote higher levels of control and carefulness in the society’s spending behavior: overspending individuals and organizations would run the risk of unsuccessful applications for bankruptcy and retention of debt liabilities.

 

 

 

 

References

Martin, N., & Tama, O. (2008). Inside Bankruptcy Law: what matters and why. Aspen Publishers Online, New York, USA