Bragging Rights…
Is it better to excel at something bad than to excel at nothing at all? You tell me…
According to a Dow Jones Newswire story reported in The Tennessean on July 23, 2007, Tennessee leads the country in bankruptcies.
In Tennessee, 5.8 residents out of every 1,000 file for bankruptcy on an annual basis, compared with the national average of 2.52 per 1,000. In Georgia and Alabama, the rates are 4.87 and 4.77, respectively.
The article discusses various possible reasons or causes for high bankruptcy rates, including low income levels, high divorce rates, proximity to legalized gambling, lack of social stigma, and my favorite, lawyers. Yeah, let’s blame it on the lawyers…
HOUSEHOLD BUDGETING: TENNESSEE STYLE
Alabama and Tennessee played leading roles in the development of Chapter 13 bankruptcy, which was widely encouraged by prominent state politicians. According to Southern bankruptcy lawyers, coaching clients to file for bankruptcy has been ingrained in the legal culture for decades.
Chapter 13 was established with the Chandler Act of 1938, which was named after Rep. Walter “Clift” Chandler, a former Memphis mayor and staunch bankruptcy advocate.
“It was viewed as a way to get bills paid,” said Ben Sissman, a Memphis bankruptcy attorney.
“Tennessee lawyers got interested, judges got interested, and bankruptcy became more practical for people.”
6 Comments so far
When bankruptcy becomes more practical, we should all be scared. “There ain’t no free lunch.” Somebody always pays, and it’s almost always us.
Elsie: How very true. Unfortunately we have become a society that not only tolerates but rewards those who fail, whether through inability or indifference, to take responsibility for their own lives. And society (that’s the rest of us) always foot the bill…
Fortunately, the reforms in the bankruptcy law are making some impact. It’s now harder to file, and harder to get through the process, so only the truly motivated make the trip. Chapter 13’s prominence is up, now, too, which is a very good thing, since under Chapter 13, the debtor pays at least some of his debt, as opposed to Chapter 7, where the debt is just expunged.
Probably the biggest negative change that has happened over the past many years is the decline in the opprobrium associated with bankruptcy. There was a time when shame alone would keep people from filing, but we seem to be a society utterly lacking in shame now.
I love the last line: and bankruptcy became more practical for people.
Of course, if it hadn’t been so impractical before we’d all have been doing it.
Ya know, I don’t think you can call this excelling. I mean, okay, you lead the nation. But you only rack up 5.8 out of a thousand. I bet if Tennessee tried really hard, they could push that up to 7…maybe 8 percent!
I agree with Em…this is hardly excelling. When people fail…they should pay the price….not the rest of us. We all have to be accountable for the way we live. This total lack of fairness just makes me boil.