alt Hacker NewsUS bankruptcy laws are not punitive enough. After bankruptcy, he should not have been allowed to gamble, anywhere. The US needs something like China's "high level consumption restriction", which can be imposed on people in financial trouble.[1] Companies, too, in which case it applies to executives as individuals.
Prohibited:
- Travel: No air travel; limited high-speed rail. Can still take the slow green trains, but only in the lower-class coaches.
- Lodging & leisure: No stays in star-rated hotels, nightclubs, golf courses, or other luxury venues. Yes, no golf. No gambling visits to Macau, either. Within China, gambling is already prohibited.
- Property & business: No purchase of real estate; no leasing high-end offices/hotels; no luxury vehicle purchases.
- Education & insurance: No enrollment of children in high-cost private schools.
China can make this work because everything runs on the official government ID card, and the database of who's on consumption restriction is tied to that.
[1] https://www.chinajusticeobserver.com/a/restriction-on-high-l...
with respect, fuck no. Bankruptcy should be less consequential. A lender or creditor should rely on their own measure of creditworthiness to determine who to lend to, not rely on a borrower’s fear of the state. The punitive nature of bankruptcy served a purpose decades ago but nowadays it is not needed. A lot of creditors nowadays don’t even bother pursuing debts, instead focusing on better checks upfront, hence so much debt being sold for pennies on the dollar. Making bankruptcy catastrophic would give creditors the wrong incentives.