The truth about bankruptcy: It’s in the Constitution- for times like these.
“Many pundits and commentators insinuate that there is some moral or ethical problem with filing a Bankruptcy. Few people know that it is not something new but was included in the US Constitution by the Founding Fathers as one of the primary powers of Congress.”
Article 1, Section 8, Clause 4 states that ”The Congress shall have Power to…. establish …uniform Laws on the subject of Bankruptcies throughout the United States.”
It should be noted that by placing Bankruptcy in the fourth clause, it was listed prior to such important powers as coining money, establishing a post office and raising armies and navies (which aren’t listed until clauses 12 and 13.)
The Founding Fathers understood Business and Economics
While the Founding fathers are known for many things, most were businessmen who understood that there were always going to be good times and bad times. They understood that fortunes could be won and lost. Ships would sink, wars, insurrections, riots could suddenly erupt and natural disasters and other unpredictable events could strike without warning. Crop failures, pandemics, floods, pestilence were a routine part of life and would make the filing of bankruptcies necessary. They made sure that Congress passed laws to address it. It was included in the Constitution for times just like these.
If Thomas Jefferson can go broke- so can you!
Filing a bankruptcy doesn’t mean you did something wrong, that you are an idiot, or have a moral problems. Larger social, political and economic forces often disrupt the finances of both companies and individuals. No one entity has any real control over larger economic circumstances, and despite what politicians say, the government doesn’t have much real control either. Booms and busts have long been a part of life. No one could have known in 2001 that Las Vegas was about to enter a housing and real estate bubble.
According to ConstitutionFacts.com:
“Thomas Jefferson has been described as ‘a(n): agriculturalist, anthropologist, architect, astronomer, bibliophile, botanist, classicist, diplomat, educator, ethnologist, farmer, geographer, gourmet, horseman, horticulturist, inventor, lawyer, lexicographer, linguist, mathematician, meteorologist, musician, naturalist, numismatist, paleontologist, philosopher, political philosopher, scientist, statesman, violinist, writer. He was also fluent in Greek, Latin, French, Spanish, Italian, and German.
But according to the same website:
“Thomas Jefferson died broke. Before his death, Jefferson was able to alleviate part of his financial problems by accepting $25,000 for his books from Congress. Those books were used to begin the Library of Congress. Friends even tried to organize a lottery to sell part of his land to help, but it was not enough.”
Jefferson is not the only Founding Father to die broke.
Other signers of the Declaration Of Independence lost vast fortunes.
According to Foundingfathers.com:
“Lewis Morris and family spent the entire war in exile, their vast estate and fortune destroyed.
‘Honest John’ Hart left his dying wife and 13 children behind, hiding in caves and forests. Years later he returned to find his wife’s grave, his 13 children gone. He died alone, a broken man in 1779.
Robert Morris lent his vast fortune and credit to the cause. He died broke in 1806.
William Ellery had his home and property looted.
Thomas Heyward, Edward Rutledge and Arthur Middleton lost their vast fortunes while in prison. Mrs. Heyward died while her husband was imprisoned.