In 1934 the Supreme Court of the United States revealed that the main goal of bankruptcy law was to provide debtors with a “fresh start”, saying that “bankruptcy gives the honest but unfortunate debtor … a new opportunity in life, and a free path for future endeavors, unfettered by the pressure and discouragement of pre-existing debts. ”*

But this new opportunity is not only a help to those who need it, but a necessity to preserve the well-being of the country’s financial system.

The analysis is that people who are in debt cannot use their money to buy things, use services or pay their monthly payments. This, if not limited and controlled, affects the country’s economy since it generates unemployment, reduces the income from taxes collected by the government.

It is the same principle that motivated the government to approve the financial stimulus for the crisis generated by the pandemic in 2020. The government has the experience of the great depression of 1929, which says that when people do not have money to spend, eventually, The government will not have it either, so to take care of the country, you have to take care of the individual. The more people have successful jobs that allow them to go out and consume products and services the country has, the more solid and robust the economy of that city, state and country will be.