law favors the debtors at the expense of creditors
Yes, the law favors the debtors at the expense of creditors, whereby they have been given the ability to file for protection under the rule of bankruptcy. After the reforms of the acts made to the law of bankruptcy, it is evident that some of the claims rose, indicating how the law protected the debtors. Through this, it become too easy for them not to pay what they legally owed. Notably, it has been a hard task to protect the rights of both the debtors and the creditors. This is on the fact that one group or another has perceived the laws governing their relationships as being unfair.
There is a way to achieve a balance that is better on both sides of the creditors and debtors. This can be made in putting into consideration the concept of bankruptcy from the creditor’s point of view. They have tried to extend the transfer of purchasing power from themselves to the debtors. This transfer of the purchasing power gives an implication of the removal of an asset for an asset. The assets that the debtors obtain are such as funds, services, or goods, while to the creditors, the assets that they also acquire are such as secured or unsecured obligations that are legal to purchase. Thus when a debtor is in bankruptcy willingly or unwillingly, the assets that the creditors have most of the time its value diminishes typically. This always makes it easier for the debtors to repay their debts under the law of bankruptcy. As stated clearly, the law of bankruptcy acts well in providing balancing and also giving both the debtors and the creditors, a second chance in reasonable protection to their assets. Through th e process, ethical issues arise.