Bankruptcy

If someone filed bankruptcy but later on in life came into a bunch of money, do you think it would be the moral thing to do to pay back those who had to write off what you owed them?

I know legally, they don’t have to, but wouldn’t it be the right thing to do if they were able to?

I ask this because I read an article about Vince and Linda McMahon had filed in the past and are now worth an estimated $370 million and refuse to talk about it.

I had also heard that Rush Limbaugh had filed bankruptcy at one point in his life. Wonder if he ever made his creditors whole. Isn't he worth a billion or so?

Give me a break

I know that Harry Truman took years to pay back all his creditors to the penny.
Morally...yes, you should pay back those who extended you credit but it so hard nowadays to think about those people. In Truman's day you shook hands with the man who handed you the check. His faith in you showed his judgment. Today a faceless check arrives through a third party service. Six months later you find your debt owned by someone else. A year later your debt is in another pocket. Makes it very hard to take the obligation personal.
How about the case of Karyn Johnson. She used welfare, child support, and student loans to graduate from college in NYC. She was unmarried and that money came from government (the people). Today as Whoopie Goldberg she has not paid back the loans and she does not like to talk about it either. You could say that she has probably paid beau coup taxes but then so has the original person in this thread.

My take, you should pay back the money or at least talk to the persons involved. Maybe they went bankrupt because you didn't make your payoff or at least lost their job for bad judgment.

OK, I'll bite.


How do you know she hasn't paid back the loans JG?

She was interviewed about 15-20 years ago and the subject came up. She admitted that she had not paid them back and she used the "I have paid a butt load of taxes since then" defense. It might have been Barbara Walters show but I'm not certain. I paid attention because I saw her live in Norfolk a few years earlier. She brought Jessica Hahn onstage with her new implants if that helps.

They are certainly trolling with the stinky bait today. Elena get out of the water LOL.

I shall cut bait and go now.

see john thats why you cant focus & finish shit because you have all this dumb info in your head its useless to remember stuff like stop being a info hater. how much has she given back to the community how about that.

Throw the politics out. If you declared bankruptcy, recovered and now were financially able to pay back the creditors, would you. Do you feel it would be the moral thing to do or not?

I think it is the moral thing to do. I actually thought that recent changes in the personal bankruptcy laws required just that...the interest and penalties might stop, but the debt is till owed?

I do think i could be very difficult to track down the creditors...if I owed Citibank $1000, but they sold my debt to a collector for $150...can Citibank even legally accept repayment from me? And if not, what is it morally required to pay money to a collector who purchased the debt?

So, I'd say, make an honest effort to pay it back, from a moral standpoint. Hell, I've got so many loans outstanding with strippers, I could buy a new car if they suddenly all got a conscience.

I do think i could be very difficult to track down the creditors...if I owed Citibank $1000, but they sold my debt to a collector for $150...can Citibank even legally accept repayment from me? And if not, what is it morally required to pay money to a collector who purchased the debt?

So, I'd say, make an honest effort to pay it back, from a moral standpoint. Originally Posted by lacrew_2000

I agree that it would be nearly impossible to make ammends to the original creditor. In that case, would you satisfy your moral obligation if you made a donation to a charity? If I owed Citibank $1000 bucks from ten years ago that was wiped out in a bankruptcy filing, could I now donate $1000 to a legit charity and feel moral absolution?

The new bankruptcy laws didn't change much, except to require more paperwork. You can still discharge most all debts. The credit card companies, who paid for the new law, thought they won, but they didn't.

... I do think i could be very difficult to track down the creditors...if I owed Citibank $1000, but they sold my debt to a collector for $150...can Citibank even legally accept repayment from me? And if not, what is it morally required to pay money to a collector who purchased the debt? ... Originally Posted by lacrew_2000

Citibank made a business decision to sell the debt at a discounted rate (85% off) to the collector. Citibank and the collector are gambling. Citibank thinks they won't get $150 from you and the collector thinks they will get at least $150. Morally, you owe the collector $1000 (but after bankruptcy, you don't legally owe it).

Banks make loans and gamble that most to be paid back with interest. They also plan for some small number to NOT be paid back. If you are a bigger risk, the interest rate is increased to cover that increased risk.

While you still have a moral obligation to pay back the loan to a bank/collector, it is not the same as borrowing money from a friend (who is probably not charging you interest). That moral obligation is even stronger in my opinion.