The question of morality in bankruptcy

[jjim120]

Good points, HHM. The moral component has not only been stripped from our legal system, but the ethical responsibility as well. Today's lawyers do not even address ethical conduct, explaining it away in favor of winning for their client at all costs (or back pocket non-client when the game is screw the client, too, if you don't get caught). Whether it is derived from a moral sense or not, lawyers today spin, twist and circumvent the intent of the law with no consideration of ethical duty or concern for truth, for evidence, or for innocence until proven guilty. Today, money, power and influence trump truth, justice and morality throughout our legal system, our giant corporations, and even our educational institutions.

[cocoasmom]

Original post by Onwards: I'm amazed at how many stories I hear that are essentially the same... I, too, ended up having to file because of an obstinate lender, who acted against their own best interest, cutting off their nose to spite their face. In our case it was USAA, who absolutely refused to accept a short-sale on our old house which would have netted them about $60K on a $250K loan. When I explained that it was either that or I file and they get nothing, they sent me a letter saying "we realize you may file for bankruptcy and we may get nothing" and wording to the effect of "go ahead, we dare you". So I did. They lost not only the $60K but another $50K on credit card debt I had with them, all of which I COULD have paid off over time if they just accepted the short sale.

Whatever. In the end, they did me a great favor by forcing my hand; I got rid of a whole bunch of debt and have recovered nicely since then, actually building towards some sort of future rather than paying for a past I had little control over (being the financial meltdown).

Ditto here too--just different bank.

[mommi2many]

I had those very issues too, it's also why I struggled and built up more debt for 1-2 years before filing. Looking back, the moral thing to do would have been to file 2 years ago and avoid the buildup of more debt even though it was not due to spending but fees/interest. I had a very hard time with this. I had to step back and look at my life. I knew I had no other options except win the lotto. I have a family and kids, would the moral thing be to keep paying until we loose everything and end up on the street supported by the government? I felt morally I needed to look out for my families best interests.

Also consider the morallity of companies letting you borrow so much that you can end up in this situation or to take advantage of people who don't understand finances well. In truth many of us paid back our original debts, just not the compounded penalties and interest.

Amen!

[Poorhouse64]

Well when it comes to "moral hazards" I learned one thing. Never invest in real estate. There are no morals on the business end of real estate.
All the advice from wise men: try to get a loan modification, ask your bank to do a short sale, offer a deed in lieu = all this is utter nonsense. Banks don't care.


Now when I think of the morality of filing BK...all I can say is: I wish I had done it SOONER. (and I really wish the banks would have worked with us..... we didn't want to lose that house, we would have done anything to keep it...... but like I said. Banks don't care)

[jjim120]

Poorhouse, I think we are getting to the same point. We are about to lose our house, the one that we built with our own hands 35 years ago. the bank refuses to talk to us about it.

[andy158]

I posted once to this thread and after reading today about BofA proceeding with their record foreclosures and Citigroup posting a substancial profit for the last quarter, I have to question their morality to the people whose lives they turned upside down and to the use of the bial out money they got. They have no concern for anyone's well being, just the almighty dollar! Granted they are a buisness and a buisness is about making money, but do they have to support those outrageous CEO salaries at all costs?

Money = Greed = Coruption = Immorality