Moral Responsibilities in Handling Your Finances

[kav122]

What exactly are they?

I feel that handling your finances in a way in which you pay your debtors and set aside money for giving is everyone's moral responsibility. Not saying that someone is "wrong" for filing, because things happen, but if it were me, and I had to file, I would do everything to make it right by paying those who lent me money.

Does the process of bankruptcy undermine this obligation by absolving people of their debts legally?
Is it right for an employer (especially in a situation where the filer is currently employed, not a job-seeker) to pull your credit and penalize you for your financial troubles? Do employers actually do this, or does this only happen when someone is seeking a job?
Is it right for a possible employer to pull the credit on a job-seeker?

Do you (or someone you know) feel a social stigma attached to "being a person who has filed bankrupcy." Or is it the complete opposite? Do they brag about "beating the system?"

How do you feel?

[yourbeginnings]

When I worked in the investment industry (operational side) all employees had to be finger-printed, and prior to being hired had to sign a release and waiver for a criminal background check and a credit check. Employment could be denied for various credit reasons even if bankruptcy was not declared.

Do you (or someone you know) feel a social stigma attached to "being a person who has filed bankruptcy." Or is it the complete opposite? Do they brag about "beating the system?"

Of the people I know, most feel like the social stigma has been placed on them. I don't know of anyone who actually bragged about it. I feel those who filed in my network, filed without considering the long term consequences. Most I believe could have paid their debt off in a few years.

One issue that was not mentioned in the previous threads was the legal fees to declare bankruptcy. A family member had about $20K in CC debt and talked to a bankruptcy attorney. The fee was $800 (which the attorney financed with interest). I was trying to talk him out of filing over $20K, however the attorney was more convincing.

[Frugal Fannie]

Personally, the only reason I would file bankruptcy would be if the cause of it is out of my control. For example, if I had a catastrophic illness and even with insurance I was left with bills that I could not pay. This of course would be after I had exhausted all efforts to pay what I could and the creditors would not work with me.

That is a completely different situation from buying "stuff" on credit and then using the system to get out of paying for it. I think if you want it, you pay for it. If you don't, aren't you stealing?

I don't know of a situation in which your current employer would pull your credit report.

[rstlne]

Bankruptcy law may need tweaking here and there to prevent abuse, but I think some form of bankruptcy protection is necessary. Bankruptcy is a recognition that sometimes one can get in over one's head in debt for reasons that may not completely be one's fault. One example of that would be a failed business venture. Bankruptcy is a way for a debtor to make a fresh start and for creditors to get their share of what can be paid out.

That said, I have a friend who filed for bankruptcy last year and I'm a bit annoyed that he doesn't appear to have learnt any lessons about spending money on non-essential stuff. Apart from no longer having any credit cards, nothing much seems to have changed in his lifestyle. However, I ought not to rag on him too much. Even though he may not show it, filing for bankruptcy still is an onerous process and he needs support more than criticism.

[kav122]

I just watched "Maxed Out". I had been meaning to for a long time, but when it was mentioned on another thread I went to youtube.com and watched it.

I have to apologize. I said before that "if I were in debt, I wouldn't be on the computer, I would be out working 3 jobs".

That was completely callous and judgemental of me. I didn't realize it at the time, but now I think it was. I guess because I have never known anyone to be in that kind of credit card debt, I guess I didn't realize how easy it was for someone, even responsible people to go in debt--even bankruptcy.

That movie made me mad at the cc companies and system, and sad for those affected. I hope I never get in that predicament. I'm sorry for anyone that is.

[khorrell]

I do know that if you have a government security clearance, your credit will be checked periodically and you can have your clearance revoked if you are in serious trouble. The logic is that being in a dire financial situation would make you more likely to consider sharing classified information for financial gain.

[trixs]

In my short life I have none many people that are completely useless when it comes to managing finances. They build up huge debts and then wonder why they have a problem paying there bills. Could it possibly be the 60' TV? I think that such a person should never be able to file bankruptcy as they brought it on themselves. Now if something major happens to you, say a health issue, then thats a different story.

Should a person fell obliged to give? I certainly do not.

[trixs]

Originally Posted by kav122

That was completely callous and judgemental of me. I didn't realize it at the time, but now I think it was. I guess because I have never known anyone to be in that kind of credit card debt, I guess I didn't realize how easy it was for someone, even responsible people to go in debt--even bankruptcy.

That movie made me mad at the cc companies and system, and sad for those affected. I hope I never get in that predicament. I'm sorry for anyone that is.

I have not seen that movie in a very long time but seem to remember a person living in a huge house with many many 'things'. She was in trouble because of her debt and scarred to be put out on the street. I cant help but wonder what she needs that huge house for or all that useless garbage that filled it.

[Milehimama]

Since you brought up morality, I'll bring up Thomas Aquinas, who thought it was wrong to charge interest.

Yes, one should pay their creditors, but that assumes their creditors operate morally as well. It also does not take into account medical bills/bankruptcy.

[ThePennyMine]

When I got hired at the bank they did a full background and credit check on me. Their reasons make sense and I don't find them to be immoral: I work around money all day. If someone has bad credit, there is a good chance that they are, or have been in financial trouble in the past. This would make them more likely to need the money they deal with all day and steal, so the bank simply uses a credit check as a precaution.

The movie "Mad Money" brings up a couple of moral issues to do with finances and money!

I personally would never file for bankruptcy unless I absolutely HAD to, nor would I call my credit card company and claim false charges that I had actually made. I do find this to be horribly immoral and the latter is nothing short of theft.