Bad debt

Bad debt is a serious financial difficulty affecting the United States. When sight do non pass on their debts, the economy suffers because the banks, credit card companies, doctors, utility companies, and other carees lose money. The same applies to when businesses flunk to pay their financial obligations to other businesses. However, individualal rubber debt and corporate bad debt is viewed differently by the government (failure FAQ for small business. ) Corporate bad debt is easier to lodge unsuccessful person upon than when a private person loses money.This seems to be simply because allowing corporations to do business honestly without threat of losing their personal financial security is an fundamental ideal to keep the economy going. A company getting loose of their bad debt through bankruptcy all but destroys their ability to handicap in business. Personal bad debt, however, is treated stricter because there are by appearance more controllable factors. People are expected to fly the coop their families and stay in a home without using credit and to not borrow more than they can afford.In addition, the companies and government likely fear that if people who dont pay their bills can repeatedly file bankruptcy and keep everything they bought, there leave behind be no incentive for them to do the right thing and live within their means. Those who honestly cannot pay their bills will not go to jail, but in the case of a business will likely lose their company and in a persons case lose any homes or other place owned (Bankruptcy Courts. ) Otherwise, the economy would be in even worse execute if people and businesses could just run up bills, decide not to pay them, and not have any additional financial consequences.The governments position seems to remain that businesses have a better right and take up for credit to help the economy than individual households, and this is unlikely to change anytime soon. References Bankruptcy Basics. (2006). Retrieved March 25, 2009 from U. S. Courts http//www. uscourts. gov/bankruptcycourts. html. Bankruptcy FAQ for small business. (2009). Retrieved March 25, 2009 from Bankruptcy in apprize http//www. moranlaw. net/business-bankruptcy-faqs. htm.