[dikdik]

Would you be ok with instituting a law that mortgage and medical debts can no longer be discharged through bankruptcy?

I bet people get really irresponsible when they realize they don't have to pay these debts, they just have to take a massive hit to their credit score....or maybe, most people don't become irresponsible, the people that really need the help get it, and a couple take advantage of the system.

[ericd]

No, that's not what I'm advocating for at all, nor would I bring back debtor's prison, or any of the other relics of The Bad Old Days. Just advocating against trying to tell people that it's totally OK to declare bankruptcy in the event that it makes more financial sense for them. It should be reserved for completely untenable situations, and unless you had a reasonable expectation that it would work out, there should be a at least some personal shame involved for having made such poor decisions, such that they don't make the same mistakes again. We shouldn't try to normalize it.

You're spending other people's money. Treat it with respect.

[jackvalentine]

> there should be a at least some personal shame involved for having made such poor decisions

What about the shame of the lender for making poor lending decisions?

> We shouldn't try to normalize it.

Why not? The only reasons you've given is "because it makes for a nicer society" but I don't actually see how it does. All you're doing is taking one of the few tools the individual has to mitigate financial problems away from them because you want to moralise their failure.

It's not like declaring bankruptcy is a walk in the park. It's a total pain and really negatively impacts your ability to do a lot of stuff. It is already a last resort for individuals and they shouldn't be stigmatised for taking it.

> You're spending other people's money. Treat it with respect.

No you're spending your own money, gained through a business transaction in which the lender has accounted for the risk of non-repayment.

I actually think it makes for a potentially nicer society if lenders are incentivised to have a stake in the successful outcome of their clients. If the client is culturally conditioned to try and pay their loan even after the point it makes no sense to, then the lenders will put more and more onerous terms and rates on loans because they know the person will never give up. Lenders will have to make sure it's a good deal for their clients, not just themselves.