I have been seeing a lot of commercials on television asking viewers to call their Congressman to stop Puerto Rico from filing bankruptcy. I have an opposing view. I think Puerto Rico should be allowed to file for bankruptcy.
The purpose of our modern bankruptcy system is to prevent economic slavery. Many people are shocked to discover that our bankruptcy systems was inspired by the Bible (Deuteronomy 15). We can also see the same theme in the Code of Hammurabi.
The Code of Hammurabi, for instance, the life and freedom of the debtor made insolvent by misfortune were protected from creditors and in the Islamitic law we find that the honest but unfortuante debtor was allowed a definite amount as an exemption. Levinthal, L. E.. (1918). The Early History of Bankruptcy Law. University of Pennsylvania Law Review and American Law Register, 66(5/6), 223–250. http://doi.org/10.2307/3314078
Many famous people in American history have used the bankruptcy system to reboot their lives. Abraham Lincoln, Henry Ford, Walt Disney, Larry King and Dave Ramsey are a few that come to mind. Thank goodness these famous people were given grace and allowed a second chance. They all went to do great things and tremendously helped our economy through their successes. Puerto Rico should be allowed to do the same.
The current economic state of Puerto Rico is a disaster. Every year, almost two percent of the population moves away to the mainland United States. They have an unemployment rate of almost 12 percent. In short, Puerto Rico is headed for a meltdown.
Congress has two choices:
- Allow Puerto Rico to file bankruptcy under Chapter 9 so that it has a chance to recover just like Henry Ford, Dave Ramsey, Larry King and Walt Disney or
- Let Puerto Rico rot indefinitely in economic slavery under the weight of its creditors.
In conclusion, people are allowed to file bankruptcy, companies are allowed to file bankruptcy, farmers and cities are allowed to file bankruptcy. Puerto Rico should be allowed to do so as well.
The bad news is that Puerto Rico cannot currently get any bankruptcy relief. The good news for individuals is that you can get relief. Call us today at 770-637-1756 for your free consultation so that we can come up with a plan that works for you.