The decision to file for bankruptcy isn’t personal, “it’s strictly business.” Family comes first.

Morality is of paramount  concern to many faced with the decision of whether to file for bankruptcy. Most who incur debt intend to pay it back, hence waving the “financial white flag” and meeting with a bankruptcy attorney can be difficult, it just doesn’t “feel right.” Is filing for bankruptcy immoral? Odd as it may seem, I believe Francis Ford Coppola’s classic The Godfather is instructive on the subject. I can hear the reaction of my reading audience……”John, what can a crime novel/movie teach us about morals? Give me a break.” Before you dismiss the argument out of hand, consider the priorities of Don Corleone and his ultimate successor and beloved son Michael Corleone. The Corleones espoused family above all else. Armed with the conviction (no pun intended) that higher authority was corrupt, Don Corleone did whatever it took to provide for his family. Of course this article is not intended to condone murder for hire, prostitution or the use of an olive oil business as a front to launder money. It is to say that when deciding if bankruptcy is the right option, consider what is best for your family.

For most Americans, family comes first, the Corleones being no exception. Losing a monthly struggle to cover the mortgage or credit card bills while worrying about where the money to pay for groceries is going to come from is not acceptable. Relief is available. Rooted in equity, the Bankruptcy Code exists in recognition of the fact that sometimes times are tough and starting over is necessary. The availability of liberal bankruptcy laws has been shown to encourage entreprenuership. Whether bankruptcy is the “right thing to do” can only be determined after an evaluation of the benefit to your family vs. the perceived moral detriment of not paying back some of your debts. Take a page out of the Corleone playbook and make this a dispassionate, business oriented analysis. Make no mistake, your creditors deal with you and your account in the broader context of a well established business model. Even if you are being routinely harassed by collection calls, the motivation is business, never personal. Your creditors are attempting to strengthen their bottom line. Perhaps at the last board meeting incessant phone calls were once again determined to be the most effective way of squeezing additional money out of past due accounts. Your current treatment as well as the terms upon which your loan was made are based on clinical company procedure.

The same banks that happily accepted taxpayer bailouts refuse to modify taxpayer’s mortgages. Why? The financial incentives still aren’t there. Modifying mortgages en masse isn’t good business. Furthermore, the risk of delinquency and bankruptcy is factored into your interest rate. The color of your hair has nothing to do with it. There is nothing wrong with filing for bankruptcy if you have encountered unexpected financial hardship and can’t find a way out. Don’t let a vague sense of obligation stand in the way of relief that can help your family. As Michael Corleone would say: “it’s not personal, strictly business.”

Still not convinced? See what the Bible has to say about bankruptcy.

John O’Connor