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Bankruptcy laws: Implication for entrepreneurs, creditors

Do you believe that the laws should be changed to make it easier for the entrepreneurs to go into, and recover from bankruptcy? Why or why not?

What are the implications of your answer for the entrepreneurs, creditors, and the national economy?

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Do you believe that the laws should be changed to make it easier for the entrepreneurs to go into, and recover from bankruptcy? Why or why not?

The laws relating to bankruptcy are complex and vary by state because there is an option to file under federal or state law, but the overriding concept in both is that an individual filing under Chapter 7 (liquidation) or Chapter 13 (workout plan) should not lose all their assets.

Generally, an individual can retain his/her home, car and tools (subject to certain equity limits). That says to me that the individual can start over again with limited resources, but not having been stripped clean of all assets. That limitation provides that all business assets or other investments will be used to retire debts in bankruptcy, and that seems fair to me. In the Chapter 13, the workout arrangement often involves payments for five years (with ...

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