Self-study
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
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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
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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
8.
The author's attitude toward the █████████ ██ ██████████ ███ ███ ████ ██████████ ██ █████████ ██
a
approval of changes ████ ████ ████ ████ ██ ███████████ ████
This best captures the author’s attitude. Previously, laws were focused on punishment. But now, they’re focused on helping debtors, and the author
b
confidence that further ███████ ██ ███████ ████ ████ ██ ███████████
Not supported, because the author doesn’t suggest there shouldn’t be further improvement in the laws. Although she doesn’t criticize the current laws, this doesn’t imply that she thinks they’re perfect now or that they’ll be perfect in the future.
c
neutrality toward laws █████ █████ ███████ ██ █████ ██████ ████ ██ █████
The author has a positive attitude toward the development of bankruptcy law. She likes the current laws over the old laws focused on punishment.
d
skepticism regarding the ███████████ ██ █████████ ██ ███ ███████ ██ ██████████
This is too negative. The author has a positive attitude toward the development of bankruptcy law. She likes the current laws over the old laws focused on punishment.
e
concern that inefficient ████ ███ ████ ████ ████████ ██ ███████████ ███ ███████ ██ ███████
This is too negative. The author has a positive attitude toward the development of bankruptcy law. She likes the current laws over the old laws focused on punishment.