Interviewer: Is there anything else you’d like to add regarding bankruptcy?
Court Koehler: I would add one more thing. We’re talking about sort of this stigma of filing bankruptcy and the perceived damage that it has on society. I always tell people, and I want to make sure that my clients understand that bankruptcy is a right that’s provided to you in the United States Constitution.
It’s a right that is as written in stone as the right to remain silent and the right to be free from unreasonable searches. It’s right there along with those, and it’s been part of the law even before the United States was formed. All the way back in Old England and Roman law, there were provisions for bankruptcy.
Profits and Losses: The Reason for Interest Rates Is to Allow Lenders to Recoup Losses
It’s something that’s necessary in society, and it’s also a risk that your creditors are well aware of. When you’re being charging interest rates, the reason that they’re doing that is because it is possible that you can file bankruptcy.
They’re not going to be surprised all of a sudden to find out that a number of people that owe them money have filed bankruptcy. They’ve already calculated it into their expenses. They’re making a profit on you based on the interest rate that you pay in spite of the fact that some people are filing bankruptcy.
It Is Unnecessary to Struggle Financially When Bankruptcy Was Created to Ease Financial Burdens
To go through financial stress and not take advantage of those laws is almost like buying a happy meal at McDonald’s and then just not playing with the toy. It’s part of your right. It’s something in the law that you have the right to utilize and you should utilize if you need to. This is because everybody else does. I always make sure that my clients are aware of that.
By Court Koehler