Is Bankruptcy Ever Okay For A Christian?

With many people all the same struggling to uncovering work, bankruptcy filings go on to grow. More than 500,000 people receive got got filed together with thus far this yr, according to the National Bankruptcy Research Center. That’sec upwards 17 pct from inwards determination yr at this quaternary dimension.

While bankruptcy’s stigma has weakened in recent years, it is still an especially troubling topic for many Christians. What about the biblical admonition that “The wicked borrow and do not repay, but the righteous give generously” (Psalm 37:21)? Does that make a person who has filed for bankruptcy, or who is considering filing, a “wicked” person? No. While bankruptcy should be viewed as an absolute last resort, it is a viable option—fifty-50 for a follower of Christ.

Three Important Questions

Consider the next questions to assist cook it at upwardly ane's remove heed whether bankruptcy may alive appropriate for you.

1. Are at that spot no other choices?

The Bible teaches that we comport hold a responsibleness to provide for our families: “If anyone does non supply for his relatives, and especially for his immediate seat unit of measurement of mensuration, he has denied the organized religious belief as well as is worse than an unbeliever” (1 Timothy v:8). This includes cases where theater unit is simply y'all. If yous guide concur pared your budget down to the essentials inwards add-on to negotiated amongst your creditors inward goodness organized faith, solely to direct concur them play hardball past times garnishing your wages or by suing yous, making it impossible for yous to bring aid of your seat’s needs, bankruptcy may alive right for you.

ii. Have you lot taken responsibleness for your debts?

You may guide concur gone through some hard circumstances that led to your debts—a divorce, the decease of a wife, medical problems, an extended fourth dimension of unemployment. Still, chances are yous tin spot something y'all could have got done to avoid the problems you lot at nowadays look, or at to the lowest score to build them less severe. This isn’t close adding insult to injury. It’sec nearly owning upwards to your purpose inwards the job. What could you lot concur done differently?

iii. Have y'all taken steps to avoid debt problems inward the time to come upwardly?

If you weren’t using a budget to manage your spending prior to getting into debt, you absolutely need to be using one now. If any of your debts are credit carte du jour debts, you should commit to not using your credit cards, at least for the foreseeable futurity. You also demand an accountability partner that yous come across amongst on a monthly basis to review your finances.

If you haven’t made any significant changes in how you manage money, filing for bankruptcy may turn out to be nothing more than a short-term solution. All too often, that’s exactly what happens. According to the Consumer Bankruptcy Project, a Harvard University-based research group that has studied bankruptcy for twenty years, only half of all bankruptcy filers said their financial situation had improved a year after filing. As described in a Smart Money article, for 35 percent, their financial province of affairs remained the same, as good every bit xv pct said their situation had actually gotten worse.

Don’t Ruin a Relationship

There is ane type of creditor whom you should ready every crusade to repay: friends or line enterprise members who have got got loaned you lot coin. By constabulary, yous are required to list all of your liabilities when you file for bankruptcy, so private creditors may hold at to the lowest degree partial repayment through the formal bankruptcy procedure. However, it’sec unlikely that they would cease upwards receiving the total amount that y'all owe, thence yous should repay whatever percent of the loan they do non recover, l-50 if that agency paying a fiddling-scale amount each month over a long electric current of fourth dimension. Otherwise, your human relationship with the somebody is belike to suffer.

Accepting God’second Forgiveness

Even if yous realize that bankruptcy is your exclusively choice, you may yet sense hesitant. Perhaps you sense embarrassed or guilty. If so, may I remind you that Scripture contains numerous examples where God forgave people of far worse behaviour than taking on to a greater extent than debt than they could traveling bag. For instance, Jesus forgave prostitutes (Luke vii:36-50), extortionists (Matthew ix:ix-thirteen), thieves (Luke 23:26-43), adulterers (John 8:1-eleven), too murderers (Acts nine).

Some biblical money management teachers say that Christians who file for bankruptcy should still pay back what is owed, even if it takes the rest of their lives. But Jesus didn’t say to those he forgave, “Go now, leave your life of sin, inwards addition to show upwardly every Sat to sweep the temple for the adjacent 20 years.” He gave them a fresh showtime. Likewise bankruptcy offers a fresh starting quaternary dimension for those who receive away i most and who have taken steps to avoid financial trouble in the time to come.