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May 25, 2012
Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite
Erika Bolstad: Temple cancels Wasserman Schultz speech
The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread
May 24, 2012
Jeff Jacoby: The peace process battered Israel's reputation
Michael Muskal: 'Pro-choice' position hits record low, according to poll
Chris Farrell: Are We in a Tech Bubble?
The Kosher Gourmet by Penelope Wall: PHILLY CHEESE STEAKS --- hold the steak!
May 23, 2012
Tony Pugh: More private colleges offering tuition discounts
Mary Beth Franklin: How to Choose the Right Annuity for You
Tina Susman: The wig wasn't enough: Man gets 13 years for posing as his dead mom
The Kosher Gourmet by Emma Christensen:A simple way to do fish right
May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
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Jewish World Review
The Morality of Bankruptcy, Part III
By
Rabbi Dr. Asher Meir
http://www.JewishWorldReview.com |
Last week we discussed the requirement in Jewish law to provide certain basic exempt assets to an insolvent debtor and arrange a repayment schedule. However, none of the rules we discussed allowed for a discharge of the debt as we find in many bankruptcy settlements. The debtor is given a bit of relief from counterproductive or vindictive collection actions, and continues to pay back his debts to the best of his ability.
However, the Torah also provides for discharge of debt. We find in the book of Deuteronomy (Living Torah translation):
At the end of every seven years, you shall celebrate the remission year. The idea of the remission year is that every creditor shall remit any debt owed by his neighbor and brother when G-d's remission year comes around. You may collect from the alien, but if you have any claim against your brother for a debt, you must relinquish it. G-d will then bless you in the land that G-d your Lord is giving you to occupy as a heritage, and there will not be any more poor among you. (Deuteronomy 15:1-4)
The rationale for such a release is clear: it is sometimes in everyone's interest to give debtors a fresh start, a new lease on life that will give them the ability and the incentive to become productive citizens. If the debts were incurred in good faith but hardship intervened, then the creditor will gain little by demanding full repayment from an indigent debtor and a fresh start is called for.
Some commentators question the existence of a parallel between the Sabbatical year discharge and modern bankruptcy. They point out that the Sabbatical year discharge applies equally to rich and poor, and that only loans are exempt, not other kinds of debts. They also point out that it is considered praiseworthy to pay back cancelled Sabbatical debts when possible.
I don't think these objections are decisive. Debts are only cancelled in the Sabbatical year when they came due before the year begins but were left uncollected. In most cases this would apply specifically to insolvent debtors; debtors of means would have paid up beforehand or have their assets seized. We should add that throughout the Torah the assumption is that loans, which in ancient times were interest free, were given to poor people. Indeed, the release passage itself refers to this, pointing out that if we fulfill this commandment ultimately we will not lose from it because the result will be that "there will not be any more poor among you."
It is true that later Sages instituted a way to circumvent the automatic release of debts in the Sabbatical year.(1) The reason is that being too lenient on poor debtors ultimately works to their disadvantage; if creditors cannot enforce repayment they will not agree to lend and credit will be unavailable. (2) As a matter of public policy the Sages concluded that in that era allowing an automatic release was imprudent,(1) but that doesn't mean that allowing the court discretion to release certain debts, or to allow the Sabbatical year to release them, is somehow against the spirit of the law. The true lesson is that while allowing a fresh start is a worthy ideal, sometimes the economic and social conditions make it counterproductive.
It is true that some debts are not discharged in the Sabbatical year, but that is more an area of similarity than of difference to modern bankruptcy. In modern bankruptcy also different kinds of debts can be treated differently, and fraud in particular is a bar to a release. Jewish law may also consider some debts to persist after bankruptcy, and these should be paid even after a discharge whenever the opportunity presents itself. An example would a benevolent loan given under the understanding that all efforts would be made to repay. (3)
Judaism considers paying debts a positive obligation – a mitzvah. (4) Any time a person incurs a debt, he must do so with good faith and with reason to believe that he will be able to repay. He must then make every effort to obtain the means to fulfill his obligation.
But if unexpected setbacks make it impossible to pay, the Torah suggests an ideal of giving the debtor a fresh start. In many jurisdictions legislatures have identified with this ideal and introduced the ability for debtors to obtain such a fresh start, subject to various legal conditions and review. It is ethical to avail yourself of these laws if indeed your obligations were assumed with good faith, if you are properly eligible for the release, and if you need the discharge in order to obtain a true and fair fresh start in your affairs.
SOURCES: (1) Mishna Sheviis 10:3. (2) See e.g. Babylonian Talmud, Yevamos 122b, Ketubot 88a. (3) See e.g. Responsa Chelkas Yaakov, Choshen Mishpat 32. (4) Babylonian Talmud, Ketubos 86a
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JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan
administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology.
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