[quote=FlyerInHi]If you look back at history, the reason bankruptcy is constitutionally enshrined is because our Founders wanted to avoid “debt servitude” that was common in Europe and encourage a commercial republic. Debtors could have their debts discharged at the Federal level and start anew, without dealing with contradictory state laws.[/quote]
I understand the reasons behind bankruptcy laws, but think that they have become so warped that they are now abused on a regular basis. It’s one thing to enable a farmer to declare BK if a horrible drought wipes out everything he owns, or if someone becomes so ill that they cannot work and have tremendous medical bills to boot; but it’s totally unacceptable (IMO) to allow people who have simply overspent on all manner of vacations, real estate, jewelry, cars, fancy restaurants, etc. to still all of their creditors.
