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One of the things that we do in that law is we limit the degree
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to which we're allowed to punish the borrowers.
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So bankruptcy law pretty much says
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we're going to put some limit on how much
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Katie can inflict pain on Steven for running off with the lunch money.
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Steven can simply say I can't repay, I'm bankrupt,
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and he's more or less allowed to have a fresh start.
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So the law would be good here but there's limits to what we can do.
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We could go back to the Dickensian world
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of throwing Steven in jail for not repaying the loan,
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but it's tough. There are down sides to that it turns out.
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So what else could we do?