When a Christian is drowning in debt, is it scriptural to file for bankruptcy? It’s essential that believers understand the relationship between bankruptcy and the Bible before making a final decision. Fortunately, the Bible has a good deal to say about money and debt.
There are, of course, differing interpretations of the relevant Bible passages, but consulting your pastor in addition to prayerful consideration of the scriptures will undoubtedly equip you with the direction and peace of mind you desire. In this post, we review what the bible says about debt.
Is Bankruptcy a Sin?
Escaping the clutches of overwhelming debt is both humiliating and stressful. However, it’s important to realize that experiencing financial hardship has been a common feature of social life throughout history, even the Christian era. Still, it’s both reasonable and prudent for a committed Christian to wonder whether failing to repay one’s debts is a sin.
The Bible teaches that debt is a slavemaster and, of course, Christ died to free the fallen human race from the bondage of sin. Who could deny that the grip of out-of-control debt not only has the power to destroy the financial integrity of a family, it’s destined to disturb the peace of soul that should be ours in Christ?
Although the Bible doesn’t provide any definite direction regarding the advisability of going into debt, much less taking advantage of modern bankruptcy laws, Christian tradition has always emphasized the importance of honesty and personal integrity. According to Ecclesiastes 5:5, saying nothing is preferable to failing to honor a promise. This wise maxim is undoubtedly true, but most people have every intention of repaying their debts.
We all make poor financial decisions from time to time. Moreover, circumstances have a habit of changing unexpectedly, often at a moment’s notice. The average person cannot simply predict the future. Unfortunately, financial duress can suddenly appear, such as the loss of a job, a severe economic downturn, a medical emergency, or some other unexpected economic disruption, undermining the anticipation of a promising financial future. After all, that’s why the bankruptcy laws were enacted in the first place. Sometimes it’s just impossible to overcome the challenge of a severe financial crisis.
Keep in mind that even bankruptcy laws can’t protect you from taxes owed. Consider the following passage from Romans 13:7:
“Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.”
Even though the Bible doesn’t address modern bankruptcy laws specifically, scripture does have something to say about debt forgiveness. The following Bible passages are certainly in keeping with the mercy and grace described in the Gospels.
Luke 7:42:
“When they were unable to repay, he graciously forgave them both. So, which of them will love him more?” In Romans 13:8, the Bible says, “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.”
Deuteronomy 15:1-2:
“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.”
Bible and Debt Forgiveness
Several Biblical teachings give credence to federal bankruptcy laws. There is certainly no reason for a Christian to assume that filing for bankruptcy is a sin. Existing bankruptcy laws were originally enacted in 1933-34 and amended periodically after that.
The United States bankruptcy laws include provisions for both personal and business bankruptcy in the event of severe financial circumstances. The legacy of bankruptcy laws goes back to old Europe and, as we have seen, even the New and Old Testaments. When no other option suffices, it’s a blessing to know that the combination of bankruptcy and the Bible can help create a new financial beginning for you and your family.
Get Bankruptcy Help
If you are in severe financial distress, it is not unethical in the eyes of the Bible to file for bankruptcy. No matter how bleak your situation is, do not give up hope and put your trust and belief in Him.
If you are struggling with debt, you don’t need to go through this process alone. If you need a bankruptcy attorney in Michigan, Moran Law can help. Contact us today to work with an expert lawyer - we can walk you through the bankruptcy process and help you get a fresh start to a better financial future.
