Bankruptcy Without Shame: An American Lesson for Europe

This article examines American bankruptcy law, focusing on the Chapter 7 procedure as a lesson in pragmatism for Europe. The author explains that in the US, bankruptcy is not viewed as a moral failure, but rather as an economic "fresh start," allowing the debtor to quickly discharge their debts and return to market activity. The text details the role of the trustee, the mechanism for liquidating assets, and the differences between the American Bankruptcy Code and European systems such as the German InsO. It emphasizes that the American model, although harsh in its enforcement of assets, is more effective in restoring individuals to the economy, rejecting the metaphysics of guilt in favor of economic functionalism.