Forgive yourself for your debt. Debt forgiveness is in the bible and bankruptcy is the answer.

forgive yourself 3I have written in the past (here) about how bankruptcy is sanctioned by the bible.  In the old testament in the book of Deuteronomy (15:1) it states thatbible 2 debts must be cancelled every seven years.   The Jewish people considered it very important to forgive debt completely after seven years.  They realized thousands of years ago that it was good for people and good for society if people had no long-term debt.  If they could not pay the debt I seven years then it was better for all to have it forgiven and lifted off the shoulders of the people.

The Christians said the same thing in the New Testament.  The Christians believed in forgiveness.  Jesus himself emphasized its importance.  I believe this includes forgiving yourself for the debt you have incurred but you cannot pay.  You blame yourself and you hang onto the debt you incurred a long time ago thinking that you will be able to pay it one day.  But this goes on and on.

It’s time to forgive yourself for charging up the credit cards, or returning an automobile you could not afford, and especially for medical debt which you cannot pay.  You may have thought you would have the money to pay it later but the money never came.  And now the debt is still there and the collectors are calling every day for you to repay it.  Some of them may even have sued you for it.

But the repayment doesn’t happen and it probably won’t happen.  So it’s time to forgive yourself for getting into debt in the first place.  Forgive yourself like you forgive others.  It’s in the bible.  In the New Testament.  You have all heard the saying; “to err is human but to forgive divine”.

freedom 4 Once you forgive yourself for the debt then maybe you can take the next step to rid yourself of it which is to file for bankruptcy to cancel your debts.  A bankruptcy discharge will lift your debt burden and let you get a fresh start and give you the freedom from your debt burden.  This freedom will allow you to live like you should and not be burdened by debt.  People have known for thousands of years how important this is.  Debt forgiveness was good enough for the ancient Jewish people of the bible and it’s part of Christianity too.  Bankruptcy is your legal, moral, and ethical pathway to debt forgiveness talked about in Deuteronomy.

I am a San Diego bankruptcy attorney.  For further questions please visit my website at www.farquharlaw.com .  Or call my office for a free consultation or for any other advice about bankruptcy or debt at (619) 702-5015. Call now for free credit report and analysis!

For a free e-book on “13 things to do to prepare for your bankruptcy filing” please e-mail me at farquharesq@yahoo.com.

“Accidents” photo courtesy of merfam.  Holy bible photo courtesy of Steve Snodgrass. Freedom photo courtesy of Josef Grunig

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“Occupy Chicago” wants to forgive student loans. Your student loan bailout should be through bankruptcy!

The “Occupy Wall Street” movement has created many spinoff movements all over the country like the one here in San Diego.  After hearing criticism for their lack of coherent demands, the “Occupy Chicago” chapter came out with a list of demands on Monday.  Among other things, like taxing the wealthy and attacking Wall Street, they want student loans forgiven.  I argued in a blog that I posted Sunday on the Occupy San Diego movement that student loans should be dischargeable in bankruptcy.

In the face of the bailouts that Wall Street firms and banks received more and more people are asking “where is our bailout”?  Regular people have a tremendous amount of debt which they cannot afford and they believe that justice demands that they need some consideration from government.  It is true that almost 50% of people pay no income taxes but should we bailout the 99% with massive wealth transfers?

I say no.   Most people in this country will not go for that.  I have argued for years on my blog that a bailout plan already exists for the 99% of us that are neither rich nor giant corporations.  It’s called bankruptcy and bankruptcy allows you to legally walk away from your debts and have them discharged so you no longer owe them.  You can then get a fresh start debt free and keep what money you earn from employment.  Everyone can avail themselves of bankruptcy.  You don’t have to be a privileged person or corporation to get it.  In fact if you make too much money you will be means tested out of a chapter 7.

So bankruptcy is available for regular people but there is a problem.  Student loans cannot be included in bankruptcy.  Student loans currently are not dischargeable in bankruptcy.   They do therefore indeed last forever or until you allege “undue hardship” which is very hard to prove.  If these student loans were to be included in the lists of debts that people could discharge in bankruptcy then regular people would not be saddled with them forever.  They could escape them and move on in life with their student loans forgiven.

This could be done so much more easily and fairly in the context of bankruptcy than through some government blanket forgiveness.  Bankruptcy has been around for hundreds of years and the systems are in place to handle forgiveness of debt through the filing of bankruptcy.  There are trustees and judges to oversee each individual to make sure that the people asking for forgiveness really can’t afford to pay these debts back because the have neither the income or assets to do so.

In bankruptcy there are even proscribed exemptions that allow each person to keep a certain amount of property.  For most of the 99% this would amount to people keeping all of their property because most people don’t have more than these allowed exemption amounts.

This solution will also be so much more palatable to the American public.  It allows the forgiveness of the student loan debt but within the confines of the bankruptcy system.  Each individual would have to file for bankruptcy to get his student loan debt forgiveness.  He would then be examined by a Trustee and he would face a judge if fraud or other problems came up.   His income and expenses would be looked at to determine that he could not pay his debts with his current income and thus he is formally bankrupt. Those who could afford to pay the loans would then have to do so in some form but many many student loan debtors would be able to escape these loans if they were dischargeable in bankruptcy.  Bankruptcy is no blanket gift.

And it would be fair.  Many people with student loans cannot afford to pay these loans and they have very little hope of paying them back.  They are under employed or more likely unemployed and they cannot afford their living expenses let alone these student loans that have not even landed them a job.  It is simply not fair that a person who used their credit cards to excess can discharge those debts but the person trying to get an education and a job can never escape them even if they have no money and no job.

But many people will say that if we make student loans dischargeable in bankruptcy then student loans will be harder to get.   Maybe that is a good thing and people won’t borrow money for degrees that won’t lead to a job.  But I also believe that as credit cards are still obtainable by most people today and they are dischargeable in bankruptcy.  Bankruptcy has not stopped that industry and dischargeable student loans will not stop lenders from lending money for these loans either.

It also should not matter whether the loans are government or private.  If  they are private then the loans should be treated like credit cards and if government loans are owed then forgiveness of these loans is only fair in light of the bailouts given by the government to the financial industry.  Whether government or private though the effect is the same on people.  They can’t afford to pay them back in many cases.  (Remember also that IRS tax debt is dischargeable after only 3 years and the IRS still continues to operate).

And for further fairness you could make student loans dischargeable after a period of time say 10 or even 20 years.  If the student has not paid them back by that time then they are certainly having a problem and they probably can’t pay them back.  It is only fair to allow people to escape them in time.

I am a bankruptcy attorney practicing bankruptcy law in San Diego, CA.   For further information please visit my website at www.farquharlaw.com or www.freshsatartsandiego.com.   Or call my office for a free consultation at (619) 702-5015.  If you or someone you know are considering bankruptcy then get my Free e-book “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPCTY FILING” by e-mailing me at farquharesq@yahoo.com.

Do you need a “mulligan”? How about a do-over? Try bankruptcy. It gives you a fresh start.

According to Wikipedia a “Mulligan” was first used in the game of golf.  According to one version of the story the name came from a Canadian golfer who during a golf game claimed the right to hit the golf ball a second time after his first errant shot.  His friends then decided to call this a Mulligan and so was born the name.  It is also called a do-over and other sports have picked up on this concept and gone with it to allow players to re-do a bad play of some sort.

If its good for sports then how about you?  Everyone makes mistakes in life so why should financial mistakes be any different?  People borrow too much from credit cards or buy cars which are too expensive or buy houses that are too large.  Some people buy these things and then lose their jobs and then can’t afford to pay for them.  Others start businesses with every intention to make the business a success but then the business fails for some reason or another.

The point is that people make mistakes.  Some mistakes are forseeable and others are not but all humans are fallible.  We forgive people in sports and in other areas of  life so why not forgive them with their financial mistakes.  The Jews in the old testament forgave debt every seven years.  They knew back then that people without debt were better members of society than those with debt.  They were happier, more productive, and more of an asset to society when their debts were wiped away.  This type of debt forgiveness is as old as the bible itself.  (See here for my blog about bankruptcy and the bible).

Bankruptcy has been in the western world at least since the middle ages when the Venetians used it to stop doing business when they were broke.  It was used in England for many hundreds of years and it came over to America where it has been used extensively for businesses and individuals.

Bankruptcy became the preferred choice for many with large debts.  It is true that a stigma of failure attached itself to bankruptcy which caused many to avoid this choice for longer than they should have.  That stigma is still around today but as many see corporations emerging from bankruptcy stronger they say why not using bankruptcy to liberate individuals.  Why not use bankruptcy to clear out your own debt and to give you a fresh start?

Bankruptcy allows you to wipe away old debt that you cannot possibly pay and get a fresh start.  So if you need a Mulligan, a do-over, or a fresh start without debt then consider bankruptcy.  We forgive all kinds of mistakes in society so why not your financial ones.  You may have had the most honest of intentions when you incurred the debt but things did not work out.  Sometimes the reasons for your financial troubles can be totally beyond your control like the current recession.

So file bankruptcy and lose these debts and give yourself a much-needed Mulligan.  You, your family, and the whole of society will benefit from your decision. (See here for my article on 12 reasons why you should file bankruptcy).

I am a San Diego bankruptcy attorney.  For further questions please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation or advice about bankruptcy or debt at (619) 702-5015.   Call now for free credit report and analysis! For a free e-book on “13 things to do to prepare for your bankruptcy filing” please e-mail me at farquharesq@yahoo.com.