Tabor For Congress 2004

Proper Way to Handle a Bankruptcy

By Nathan Tabor

As a small business owner in an ever-changing economy it is important to understand a very simple principle. You canít spend more money than what you have in the bank. If you do your business will fail and will most likely result in a bankruptcy.

The definition of bankruptcy is a process of eliminating debts, protection from the courts for the payment of debts and/or the reduction of debt over a period of time.

The Bible deals with money quite extensively. The concept of ìdebt forgivenessî is Biblical and was also understood by our Founding Fathers. It was a way for those who were down to be helped back up. Helping people get back to living a normal and/or productive life.

I have first hand knowledge of this in my family. My father was a pig farmer in Alabama. One day the majority of his pigs died and he was suddenly $90,000 in debt some 30 years ago. His ability to make money was gone. His solution was simple. He sat down with my mother and wrote everyone he owed and explained what happened and asked for their help. Fortunately they didnít file bankruptcy. To make a living and pay back his debt my father started painting rental houses. Over the next 15 years he slowly but surely paid every dime back.

Bankruptcy today has become a tool used by businessmen and women to avoid their personal responsibility. Yes, there are legitimate reasons for bankruptcy and there are those who donít abuse the system. However, when you're still personally well off and those who invested in your business lose everything or those who worked for you lost their job without being fully compensated, something is not right.

Roughly 1.5 million people filled for bankruptcy in 2001. Is this a problem with the economy or is it irresponsible spending? Both. Some businesses canít survive because of changing economy. However, if you spend what isnít in the bank or if you over extend yourself or if you make poor business judgments, you wonít survive.

This is what we are currently facing in Congress. Individuals who think money grows on trees or "if I have checks I must have money." How many times have you heard people say that?

Here are a few principles that people should conduct themselves when considering filing bankruptcy or who have filed bankruptcy.

Living above your means should be avoided. Maxing out credit cards or buying things you donít need should be avoided. If you donít put yourself close to the end you most likely won't fall off.

You will not be held blameless. You canít simple file bankruptcy and walk away without paying your debts. Biblically we have to be personally responsible for our actions. Then and only then can we be responsible for others.

ìOwe no man nothing (Romans 13:8).î This doesnít mean we canít finance our home or car. It means we are not to live above our means. It means we are morally required to pay back our indebtedness in a timely and honest manner.

One underlying principle we need to remember when dealing with others on a personal or business level ñ ìDo unto others as you would have them do unto you.î In plain English . . . be honest and ethical.



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Proper Way to Handle a Bankruptcy By Nathan Tabor As a small business owner in an ever-changing economy it is important to understand a very simple principle. You canít spend more money than what you have in the bank. If you do your business will fail and will most likely result in a bankruptcy. The definition of bankruptcy is a process of eliminating debts, protection from the courts for the payment of debts and/or the reduction of debt over a period of time. The Bible deals with money quite extensively. The concept of ìdebt forgivenessî is Biblical and was also understood by our Founding Fathers. It was a way for those who were down to be helped back up. Helping people get back to living a normal and/or productive life. I have first hand knowledge of this in my family. My father was a pig farmer in Alabama. One day the majority of his pigs died and he was suddenly $90,000 in debt some 30 years ago. His ability to make money was gone. His solution was simple. He sat down with my mother and wrote everyone he owed and explained what happened and asked for their help. Fortunately they didnít file bankruptcy. To make a living and pay back his debt my father started painting rental houses. Over the next 15 years he slowly but surely paid every dime back. Bankruptcy today has become a tool used by businessmen and women to avoid their personal responsibility. Yes, there are legitimate reasons for bankruptcy and there are those who donít abuse the system. However, when you're still personally well off and those who invested in your business lose everything or those who worked for you lost their job without being fully compensated, something is not right. Roughly 1.5 million people filled for bankruptcy in 2001. Is this a problem with the economy or is it irresponsible spending? Both. Some businesses canít survive because of changing economy. However, if you spend what isnít in the bank or if you over extend yourself or if you make poor business judgments, you wonít survive. This is what we are currently facing in Congress. Individuals who think money grows on trees or "if I have checks I must have money." How many times have you heard people say that? Here are a few principles that people should conduct themselves when considering filing bankruptcy or who have filed bankruptcy. Living above your means should be avoided. Maxing out credit cards or buying things you donít need should be avoided. If you donít put yourself close to the end you most likely won't fall off. You will not be held blameless. You canít simple file bankruptcy and walk away without paying your debts. Biblically we have to be personally responsible for our actions. Then and only then can we be responsible for others. ìOwe no man nothing (Romans 13:8).î This doesnít mean we canít finance our home or car. It means we are not to live above our means. It means we are morally required to pay back our indebtedness in a timely and honest manner. One underlying principle we need to remember when dealing with others on a personal or business level ñ ìDo unto others as you would have them do unto you.î In plain English . . . be honest and ethical.