[quote=FlyerInHi]CAr, you often bitterly complain about double standards between how businesses operate and how individuals are expected to behave.
Yes, for businesses and their lawyers especially bankruptcy is foreseeable. That’s why business people form corporations so that their personal wealth is insulated.
Individuals, and municipalities should seek bankruptcy whenever best to protect standards of living. Why live on macaroni and cheese just to pay the creditors? That’s pretty stupid, IMO.
For municipalities, why cut services to the core where citizens have to pay taxes and have little services while creditors are paid in full?[/quote]
I’m not in favor of double standards here, either. I think that BK should be the very last possible option for both individuals and corporations/govt entites, and it should only be available once all of the relevant parties have given up everything they might have gained by their irresponsible and reckless behavior.
The only possible exception to this would be for individuals who are hit with huge medical costs, or some other unforeseen catastrophic event (death, disability, etc.)
I’m also greatly opposed to limited liability if there is no commensurate limit to the upside. Risks and rewards should always be balanced (real personal risks, gambling with other people’s money does not constitute risk, BTW) .
And costs can be dramatically reduced if we eliminate the corruption that exists between private entities and the govt. We do not necessarily need to reduce services dramatically. While some govt entities are run very well, others are drowning in corruption.
