It is often said that " nothing is certain when it comes to the law ". All it takes is a judge in an appeal case to have a change of opinion, and what previously seemed certain has a vastly changed application.
So it is with the bankruptcy laws. These were enacted to bring relief to people who got hopelessly into debt and who would otherwise spend their entire lives in grinding poverty. Bankruptcy was supposed to deliver a new start. What money that could be recovered was distributed to those owed - and then a line was drawn across the accounts ledger - and the bankrupt was offered a fresh start.
There is another law on the books that applies to debt - and that is the statute of limitations. If you can dodge paying a debt long enough, the person owed loses the right to take you to court and seek recovery.
Both of these laws were enacted to be merciful, but unfortunately they are sometimes manipulated. A case presently before the courts comes to mind.
Some years ago two champion swimmers had a difference of opinion - and this led to one swinging a punch that broke the others jaw. As a form of punishment, the swimming federation banned the offender from competing in his sport for a period of time.
Fixing that broken jaw required extensive medical intervention and the assaulted sought compensation from the court - and received a judgement to the tune of $ 180,000. This has not been paid - and the loser in the court case is now seeking bankruptcy protection.
The unusual circumstances in this case is the fact that the person seeking bankruptcy is resuming his swimming career - and will most likely be a star Australian athlete at the London Olympics next year. If he wins gold, he will also win instant fame and fortune - and be sought after for lucrative sponsorship deals.
So - we have that line in the ledgers if bankruptcy is granted - providing insulation from future money earned - and denying the compensation granted by the courts from ever reaching the victim of a crime.
It seems to add legitimacy to that comment that " The law is an ass ! "
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