Is Bankruptcy Biblical?

[Williamt3]

I'm struggling financially and it's not getting any better.  I am going to try to negotiate with my creditors.  If that is not enough I was going to see a lawyer about the different bankruptcy options.  I think there is one where you can payback your debt but at a reduced payment and interest.

 

But is it Biblical to file for complete bankruptcy if all else fails?

[Guest]

Bankruptcy is a valid option, especially in situation where you've tried to do everything else to get out from under the debt. Chapter 13 Bankruptcy is the one in which you repay all or a portion of the debt (unless something has changed, that is.) I had to go that route back in 1992 when I was faced with a couple of creditors that would not negotiate. It was an option my lawyer told me about, so I took it and did a full repayment. Can't really say whether its biblical or not, but the debt got paid off. Its a valid option under the law, so take it if you need it.

[ayin jade]

If it is legal and you are still paying off all debt, I see nothing wrong with it from a scriptural standpoint. 

[Guest]

Praying~!

[Willa]

The bibical solution would be to sell yourself into slavery for 7 years. But that is not legal here so bankruptsy is an honorable solution.

[LadyKay]

Somewhere in the Old Testament,( cant remember just where right now, okay I will go look it up) Something like every 7 years debts where to be forgiven. I think this is why they call it Chapter 7 bankruptcy.  Personally I do not think you should feel guilt for having to do so. Things happen in life. Some of the things that happen are not of our doing. You take out a loan to buy a house cause you have a good job. You make your payments then suddenly you are hit with a lay off notice. Or you are hit with an illness of injury and can't work. You get over run with medical bills. We try to do our best to plain for everything. But sometimes bad things just happen. The best we can do is learn from our mistakes and carry on. 

 

Oh here it is I found it:  Deuteronomy 15:1-2

 

At the end of every seven years you must cancel debts.  This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the LORD's time for canceling debts has been proclaimed. 

 

 

[Williamt3]

Thanks.  You all gave me some good info to chew on.  God Bless Ya.

[Guest]

Of course, while under the Lord's law for Israel, required the cancelation of debt after 7 years, we are not under that law, and we enter into different contracts which have their own conditions on how to end indebtedness. So while Gods solution for ancient Israel is interesting, it is of little use legally or morally, for those of us who are living under different laws, and the O.T. law becomes an academic curiosity.

 

I had to face this issue myself, having lots of debt and no income. I considered bankruptcy, and was legally entitalled to have all debt cancelled, had I chosen to go that route. However, for me to use the system to cancel debt I owed to others, would leave them holding the bag, through no fault of their own, for my debts. 

 

I can see this as nothing other than a way to steal from those to whom I legitimately owed money, and while it might be legal, it is still a theft, morally. So far, I have purposed to pay off my debts, and not take advantage of bankruptcy laws.I have been paying down bills, and even payed a few off now, but had it not been for my ability to take early S.S. benefits, I do not know if I would have been able to do so.

 

However, I was finding some income, doing manual labor for people here and there, for as little as $1.25 an hour, it is a slow and hard way to make money, but it is better than stealing, even if legitimized by the law. It never got down to that, but if I had to beg on the street, that would be more honorable in my mind, that having by debts released by the courts. 

 

On the other hand, in some cases, I was able to get my lenders to settle for lower amounts, and repayment schedules, and zero interest. While this is still a loss to them, it is a new deal, and not a theft forced on them, it id a renegotiation due to circumstances, and in some cases, there losses are partially recouped, in the form of lower taxes since their income was lowered by the loss. Not perfect, and nothing in such an arrangement prevents me from paying back more than Ithey agreed to accept, so in my case, it is not about trying to avoid paying back debt, it is just about buying extra time to do so.

 

I also benefited from an occasional offer of financial help, from church, family, and a few friends in addition to working for very low wages. With combinations of approaches, it is often possible to get by without having to resort to bankruptcy relief, and it is almost amazing how little one can live one, when one starts to pay attention to where one's money goes, in the form of drivng expenses, home ownership and/or rental, entertainment etc. Scale down, down grade, and things change a lot. I had friends, who rented a garage to live in, for their family of four - these are things that people do, to cut expenses, once they figure out what necesities are, and what things that we think of as basics, that are really luxuries.

 

Praying for you, do what you can to maintain a clear conscience and be responsible.

[crochetlady]

First - you need to acknowledge How you got into the financial mess in the 1st place.  Was it poor money management on your part?  Was it part of a divorce?  Sometimes 'life' happens and we get into financial messes. 

  Then - think about your Wants Vs. your Needs.  If you don't have the money for it Now -- don't get it. 

    Biblically -- honor the Lord -- acknowledge that what you Do have comes from Him.  Well -- except for your indebtedness -- That has been Your doing -- unless you've been divorced and have ended up  with the indebtedness from your spouse.  Our older daughter has gone through a nasty divorce  -- she'll never be out of debt. 

 

A person Can have certain amount taken directly from the pay check.

    Consolidation of payments.   Talking with the creditors. 

 

People Do declare bankrupsy -- ruins your credit rating -- some things aren't 'forgiven' that way.  I'd try all other options 1st , though. 

 

Reconsider your life style / figure out your 'means' and stay within That. 

[blue gem]

I'm not sure what country you are in but you might want to look up a christian organisation called Christians Against Poverty (CAP).

They are based in the UK, Canada, Australia and New Zealand,

They prayerfully and sensitively help people in financial difficulty and also reach out to people with the gospel message.

They take over all your paperwork, get as much of the debt written off as possible and arrange a simple repayment plan for the rest.

Many people have given testimony about how CAP has helped them out of despair and in some cases, from suicide.

They also run money management courses. Even if you are not in one of these countries, you might want to check out their

Website and see if any of the information can help in your situation.

www.capmoney.org