As a Christian Bankruptcy Attorney many Christians ask me if it’s permissible under the Bible for a person to file for bankruptcy (forgiveness of debt).
The answer is yes, yes and yes!
The initial foundation for bankruptcy is located in the Book of Deuteronomy:
“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.” Deut. 15:1-2 NIV
No repayment was required. This debt forgiveness would even apply in the event the debt was incurred immediately prior to the ending of the seventh year. The forgiveness of debt extended to a fellow Israelite and brother but not a “foreigner”. Since a “foreigner” was not required to let his land go fallow in the seventh year as the Israelites were, the “foreigner” would presumably have money to pay the debt.
This form of debt forgiveness is codified in our current bankruptcy code 11 U.S.C. Section 524 (a) (2) which states:
“A discharge in a case under this title operates as an injunction against the commencement or continuation of an action, the employment process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor…”
Chapter 7 bankruptcy is also known as a “liquidation bankruptcy” for those who cannot afford to pay some or all of their debts back to the lender.
A passage in Psalms is the foundation for a type of bankruptcy known as a Chapter 13 bankruptcy. This form of bankruptcy is also known as a “wage earners” bankruptcy for those who have a source or sources of income, and who are otherwise required by bankruptcy law to eliminate their debts by paying some or all of their debts back over a 3 – 5 year period.
The Bible states:
“The wicked borrow and do not repay….” Psalm 37:21 NIV
This scripture contemplates that if one has the financial ability to repay their debts they are required to do so. To fail to repay their debts while having the ability to do so is a clear violation of the Eight Commandment – “You shall not steal.” Exodus 20:15 NIV
The forgiveness that God has afforded us through the sacrifice of his son, Jesus Christ, on the cross knows no limits. The release of debts is just one example of His love and direction for our lives when he directs:
“Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.” Romans 13:8 NIV
The Bible contains additional scripture applicable to today’s discharge of debts through current bankruptcy law. I would welcome the opportunity to continue this discussion with you personally during a free initial consultation at my office. May God Bless You Always!
No matter how you are struggling financially, Randy Hiepe is ready and waiting to learn your story and assist you in a way that will be most beneficial for you. We limit our practice to bankruptcy and debt resolution, but most importantly, we understand that your attorney should be an advocate. Our genuine and compassionate desire to assist you will be evident in the way we communicate with our clients in a respectful and competent manner.Learn More About Us
Contact us today so that we can help. Randy Hiepe and his professional staff at Hiepe Law are eager to listen to your concerns and learn your story. We promise to give you the attention that you deserve and develop personalized solutions that will be the most effective – all we need is your name and contact information. We look forward to discussing particulars and helping you achieve a bright financial future. There’s no need to struggle and suffer beneath mountains of debt when we are available. Contact us now.