Topic: Christian, Bankruptcy, Bible
IS BANKRUPTCY SCRIPTURAL?
What does the Bible say?
Christians feel guilty about seeking to file
bankruptcy protection. They feel guilty because they ran up
large debts on
their credit cards and now are unable to pay back the money to their
Some Christians feel bad that their creditors will not be
paid. Others have
heard that the Bible condemns bankruptcy. Yet before we
begin, it is important
for us to define what is meant by the term "bankruptcy”;
then, we can
critically examine what the Bible tells us.
"At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD's release" (Deuteronomy 15:1-2).
The Bible refers to debt as a type of bondage: "...the borrower is a slave to the lender" (Proverbs 22:7). Thus, the debtor is a slave to the creditor. Interestingly, the Bible declares, at the end of the sixth year:
"...in the seventh year you shall let [your Hebrew slave] go free from you. And when you send him away free from you, you shall not let him go away empty-handed; but you shall supply him liberally from your flock..." (Deuteronomy 15:12-14).
bankruptcy laws, like the Biblical provision above, allow debtors to
certain property when they file bankruptcy. This gives
debtors a fresh start
and discourages debtors from going into debt-bondage again, after the
bankruptcy is over, in order to survive.
taught us that sin is a type of spiritual debt. Jesus also
taught us to ask
God to "forgive us our debts [sins] as we forgive
our debtors [those
who sin against us]" (Matthew 6:12, Luke 11:4).
Sin creates a
spiritual debt. Borrowing produces a financial
debt. Regarding our spiritual
debt, the law of justice declares: "the wages of sin
[separation from God]" (Romans 6:23a).
However, the law of grace
and mercy states that "the gift of God is eternal
life in Jesus
Christ our Lord" (Romans 6:23b). Jesus
paid for our debt of sin
on the cross, a debt too big for us to pay.
As with any act of mercy, someone must bear the cost or the burden, just as Jesus did in dying for our sins. With bankruptcy, the creditor and ultimately the consumers must, in mercy, bear the burden of the unpaid debt, but God said He will bless us for such acts of forgiveness and mercy (Deuteronomy 15:5,10,18).
Jesus, in two (2) parables, used the illustration of forgiveness of a financial debt to teach about God's forgiveness and the requirement that mankind forgive (see Matthew 18:21-35 and Luke 7:36-50). "And when they had nothing with which to repay, he freely forgave them both" (Luke 7:42). On a spiritual level, by the grace and mercy of God, Jesus gave us a "fresh start" by canceling all our “sin” debts through His suffering and death on the cross. On an economic level, our nation will graciously help overburdened debtors, if necessary, by giving them a fresh start economically.
A guiding principle of U.S. bankruptcy law requires persons who file for bankruptcy to have "clean hands." Accordingly, a debtor may not be freed from debts involving fraud, drunk driving, and deliberate wrongdoing. Moreover, bankruptcy law does not allow the discharge of child support and alimony debts. Further, most student loans, taxes (Romans 13:1,4,7) and secured loans are not forgiven in bankruptcy. Through these restrictions, bankruptcy laws seek to balance justice and equity (Proverbs 1:3).
As with most biblical principles, there is a balance. If you can repay your debts, you must. If you cannot, then you should determine how God would have you freed from the bondage of debt. Our modern bankruptcy laws were derived from the Bible (Deuteronomy 15:1-2). Further, the Bible describes financial miracles (2 Kings 4:1-7). Ultimately, you must seek wisdom and guidance from God as to the direction He would have you choose. God promises to give such wisdom to those who ask with a trusting heart (James 1:5-7; Proverbs 3:5-6). Further, the Bible admonishes us to seek Godly counsel (Psalms 1:1; Proverbs 12:15, 11:14, 15:22).
If you have mismanaged your finances, confess your failings to God now. You can receive, by faith, His forgiveness and cleansing (1 John 1:9). Remember, there is no condemnation or guilt to those who are in Christ Jesus (Romans 8:1). Jesus, by His love and mercy, gave us a fresh start, a new birth. Bankruptcy, based on the law of mercy with divine origins, if necessary, may provide you with a fresh start - a new and brighter economic outlook.