My question is: do you think there are folks out there counseling the businesses the way they do consumers? You know what I mean, the ones that say that there are moral and ethical reasons why you should not file for bankruptcy. Where are the Dave Ramseys of the world, telling companies like Montgomery Ward that it's wrong to take money for products you will never deliver?
The credit counseling requirement is not required for Chapter 11 bankruptcy. I am not sure about how people who have already paid for products from a retailer are treated in Chapter 11 bankruptcy. It would stand to reason that they should be treated as secured creditors, thereby giving them the greatest protection.
I mentioned the Montgomery Ward thing because I saw the WGN news story when it happened. They interviewed a couple that had paid for a new refrigerator. When they went to pick it up, they were told it could not be delivered due to the bankruptcy. There wasn't a follow up story, so I have no idea if they ever got it or their money back.
Businesses consider bankruptcy an acceptable way to reorganize, when faced with financial difficulties. There is no one telling them that they need to make good on the debts that they owe, no one telling them that bankruptcy is an immoral option that allows them to weasel out of justly owed debts. Consumers, on the other hand, are encouraged to avoid bankruptcy. It's more acceptable than it used to be, of course.
3 comments:
My question is: do you think there are folks out there counseling the businesses the way they do consumers? You know what I mean, the ones that say that there are moral and ethical reasons why you should not file for bankruptcy. Where are the Dave Ramseys of the world, telling companies like Montgomery Ward that it's wrong to take money for products you will never deliver?
Teri:
The credit counseling requirement is not required for Chapter 11 bankruptcy. I am not sure about how people who have already paid for products from a retailer are treated in Chapter 11 bankruptcy. It would stand to reason that they should be treated as secured creditors, thereby giving them the greatest protection.
I mentioned the Montgomery Ward thing because I saw the WGN news story when it happened. They interviewed a couple that had paid for a new refrigerator. When they went to pick it up, they were told it could not be delivered due to the bankruptcy. There wasn't a follow up story, so I have no idea if they ever got it or their money back.
Businesses consider bankruptcy an acceptable way to reorganize, when faced with financial difficulties. There is no one telling them that they need to make good on the debts that they owe, no one telling them that bankruptcy is an immoral option that allows them to weasel out of justly owed debts. Consumers, on the other hand, are encouraged to avoid bankruptcy. It's more acceptable than it used to be, of course.
Post a Comment