Subscription pricing
passage 2
P1
In many Western societies, modern bankruptcy laws have undergone a shift away from a focus on punishment and toward a focus on bankruptcy as a remedy for individuals and corporations in financial trouble—and, .
Intro to Topic ·
Modern bankruptcy laws
No longer about punishment. About remedying the financial situation for the debtor and creditor.
Increased Bankruptcies Declared ·
This has been criticized
Main Point ·
Do not abandon modern bankruptcy laws
Their increased use is not a reason to abandon them. They serve a useful economic purpose.
P2
███ █████ ██████████ ███ ██████████ ██ █████████ ████ ████████ ████████████ ██ ███████████ ███ ███████████ ██ ████████████ ███ █████████ ██████████ ███████ ████ ███ ████████████ ██ █████████ ████ ████████ ██████ ████ ████████ █████████████ ██ ████ ███████████ ██ ████ █████ ███████████ █████████ ███████ ████ ███████ ██ ██ ████████ ██████████ ██████ ██████████ ███████ ███████ ██ ██████ ███ ██████████ █████████ ██ █████ ██ ██████ ████ ███████ █████ ███ █████ ███████ ████ █████████ ███ ███████ ███████ ██████████ ███
Old Solution ·
Imprisonment and dissolution
Punishment was thought to be the right solution to insolvency because debtors were violating "sacrosanct" social contracts.
Critique ·
This benefits no one
Creditors can't get paid if the debtor is in jail. A dissolution of a company would cause unemployment.
P3
██████ ██████████ ███ ███ █████████ ██ ███████ ███ ████████████ ██ ███ ████████ █████████ ███
New Solution ·
Modern bankruptcy law
Two Rationales ·
(1) Public good is paramount and (2) that's better served by allowing the debtor to continue to operate
Mechanism ·
Court-directed reorganization of debt
Some debts forgiven; some assets transferred to creditors.
Punishment ·
Bad credit score
A bit of punishment is still there, but the point is to benefit society
Goal ·
Restoration of healthy economic activity
Passage Style
Critique or debate
Problem-analysis
10.
Which one of the following ██████ █████ █ ████████ ██ ███ ████████ ██████ ██ ██████████ ███████████ ██ ████ ██████ ██ ████ █████
a
Debt that has ██████ ██ █████ ████ █████████ ██ ██████████ ██ ██████████ █ █████ ███████ ███ ████ █ ██████ ███ █████ ███ ███ ██████ ███████ ████████ ██████████
b
Because insolvency ultimately █████ ███ ██████ ████████ ███ ███ ██████ ███████ █ ████████ █████████ ██ ███████████
c
The insolvency of █████████ ██ ███████████ ██ █████████ ██ ███ ████ ██ ███ ██████ ██ ████████████ ██████████████ ████████ ████ █████ ██████ ████████████ ████████ ██████ ██ ███ ████ ████
d
The dissolution of █ █████ ██████████ ██ ██████ ██ ███ ███████ ██ █ █████ ███ ██████ ███ ██ ████████ ████ ████ ████ ████████████ ██████████ ██ ███ ██████ ██ ███ ███ ██████ █████████████████
e
The employees of █ █████ ████████ ██████████ ██████ ██ ██████████ ████ ██ █████████ ██ ███ █████ ██ █ ████████ ████ ███████████████