Host: Isn t it wrong not to pay your debts?

David John Marotta: Strange as it may sound, bankruptcy is actually one of the benefits of capitalism. In a feudal society if you were -- if you owed money and you died, the debt would get passed on to children and your grandchildren and ultimately you just be sold into slave labor and you have no hope of ever paying your debt. One of the advantages of capitalism is to say, you can declare bankruptcy and get a fresh start, so although may want to pay of all your debts, the alternatives over not paying off your debts is either a life time of slavery or doing something illegal or violent and so bankruptcy provide a fresh start, a way out.

If you will, it s factored into all the loans that you have got to owe money on. credit cards make a tremendous amount of money, they know a certain number of people are going to declare bankruptcy but they still choose to lend you money on the credit card, why, because they know the interested people pay when they do pay it off, is better than the money they lose when someone doesn t pay it off and declares bankruptcy.