In 2008, current Republican presidential hopeful, Mitt Romney, wrote an op-ed piece for the New York Times titled “Let Detroit Go Bankrupt.” The main idea of the article was that he believed Bankruptcy, not government bailouts, would save the auto industry. The premise was that Romney had the best economic plan for the country and that his policies would help the nation recover much faster than the policies of McCain or any of the Democrats. Obviously, Romney didn’t even win the Republican nomination back then.
In anticipation of the 2012 race, Romney is promoting his economic stance and insists that the reason for the auto industry rebound is not because of government bailouts, but because the government finally stepped back and let Ford, Chrysler and GM manage their way out of their financial difficulties. This meant that Chrysler and GM eventually filed Chapter 11 bankruptcy. This strategy allowed Chrysler and GM to “reorganize debt and reduce costs and come out stronger”. Romney points out that bankruptcy is not always liquidation of an enterprise, but allowing them to go to the court to reorganize and come out stronger.
I agree with Romney on a couple of levels. First, just giving free money to a business (or even an individual for that matter) cannot save them if they do not already have a healthy financial plan. Sometimes businesses and individuals need to go through bankruptcy reorganization to learn some important financial principals.
Second, bankruptcy is not the end. Rather, it is a fresh start, putting you back on track towards a brighter future. With the help of an experienced Arizona bankruptcy attorney you can determine the best solution for your financial situation.
If you are a struggling individual or business owner and have questions about your options and bankruptcy, call (480) 648-8975 today for your FREE bankruptcy consultation.