This is an attempt at a quick sketch of a 1d10 chart for the effects of bankruptcy in other worlds. Because not every world has Chapter 11.
Bankruptcy in Other Worlds--1d10
1. The Year of Jubilee is the time which comes every fifty years when those who sold themselves into slavery, but not forever, and those who sold land get their freedom and their land back. (If I remember right.)
2. The government garnishees your wages. Those who are seriously in debt tend to work in the underground economy where its cash only.
3. Selling the children into slavery for life, or until they are twenty-one pays some debts.
4. To the poorhouse with ye'. You work for the gov't at their convenience, and they give what you earn minus food to your creditors.
5. Its easy to go bankrupt the first time. No problems. And then you get flooded with credit cards because now you can't go bankrupt for ten years no matter what, and the caps on interest rates and fees have been removed. You are the chief target customer of the credit card companies (some of this is true in Earth Prime, and its a national shame).
6. There is no bankruptcy. Bankruptcy is a sign of trying to evade your obligations which is simply not acceptable. If you honestly feel there is no way to pay off your debts, then there is only one honorable course. It involves a date with a pistol with a single bullet. Otherwise, you work, and work, and do whatever it takes to meet your obligations.
7. There is no interest, because it is forbidden. However, one can borrow money, and negotiate for when you will return it, and what size of additional 'gift' you will give. Since this loan with interest is unofficial, the bankruptcy proceedings tend toward unofficiality as well. It tends to be two men in a dark alley armed with small sledgehammers, and pounding on your knees. (I think or guess that a number of religions forbid 'usury' which I think is absurdly high interest rates.)
8. There is no bankruptcy because no one loans money. You can invest, or you can give, but loaning money is morally reprehensible. Its a common saying that 'to take a loan is to sell one's soul to a devil' which is insulting to the borrower (sells his soul), and the lender (a devil). In some societies along these lines, people sell percent points of their future earnings for life. Its called 'investing in a person'. Other societies consider this idea to be a slick evasion of the rule, and forbid it.
9. Kin are responsible for their relatives. This is determined by closeness of blood, but it frequently happens that fourth cousins get dunning letters for a particularly high spender.
What keeps this from being a total bailout of high spenders is the amount of private violence accepted in this society. Family reunions can frequently become the scenes of some very serious fistfights as family members 'discipline' a big spender. In this society, violence inside the family is generally ignored unless bodies start turning up, or people are out of work for more than a week.
10. Your debt is wiped out, and paid by charities. These charities now have right of refusal on any purchase you choose to make. They typically offer free classes on budgetting, and financial management and the like. They don't allow you to get in debt over your head again.
You're forgetting one. What I did. I am on medical disability for my psychosis. Yes, I am psychotic. I also owe a fair amount of $$$$ to different people. Fortunately, in this great country of ours, if you are on medical disability, they cannot garnish your wages. When creditors called, I would simply say "I am on medical disability. You can't garnish that. You can sue me all you want, and you won't get an F---ing nickel." Then I hung up. They stopped calling after a few months of that.
There's always got to be a "Get out of jail free" card. That just happens to be the one I used.
Thanks John.
I'm trying to look at this chart as "You're in a new world, what is the dominant economic system with regard to bankruptcy." However, I was not as clear as I liked, and a chart that included a 'whats your options if you are bankrupt?' would be good. And lastly, you do raise a good point--get out of jail free cards.
Although I think some of those societies would be harsh enough not to have one.
I based #6 on one of L. Neil Smith's Sf books about Libertarianism. They had a very stern ethical code with no mercy. At any time you could walk up to one of the Priest-Exectuitioners and seek not confession or redemption but assurance that you were a decent person (that is, you owed nothing to anyone either monetary or other obligations). If you did, you paid. If you could not pay, the priest shot you. This would be a society of self-righteous, arrogant, and very harsh people (sometimes it might make very guilty, repressed individuals afraid of their own shadows who always strive to be righteous). For some reason, I prefer the mercy of God, and admitting I'm a mess-up before the Divine Judge, and pleading the Blood of Christ rather than standing proudly on my imagined perfection. I also think it makes for a better society.