Many Christians are interested in the topic of Christian bankruptcy. The question of Christians and bankruptcy can be discussed on two levels. I’ll call the first the “ideal level” and the second the “sin stained” level.
Series on Christian Bankruptcy
Article Two Eight Considerations When Trying to Decide if Bankruptcy is your Best Available Option.
Article three Establishing Borrowing Boundaries. The purpose is to introduce how to avoid bankruptcy.
Should a Christians Declare Bankruptcy: The Ideal Level
On the one hand, the Bible does not deal specifically with the word bankruptcy.
On the other hand, the Bible does address borrowing and the importance of vows. A vow is simply a promise. In our society, every dollar we borrow we sign a legal document. That document is our written vow to repay the debt. Here are a few of many such verses:
The wicked borrow and do not repay, but the righteous give generously. (Psalm 37:21 NIV)
When you make a vow to God, do not delay in fulfilling it. He has no pleasure in fools; fulfill your vow. It is better not to vow than to make a vow and not fulfill it. (Ecclesiastes 5:4-5 NIV)
And do not swear by your head, for you cannot make even one hair white or black. Simply let your ‘Yes’ be ‘Yes,’ and your ‘No,’ ‘No’; anything beyond this comes from the evil one. (Matthew 5:36-37 NIV)
On the theoretical level if we were to invert the question – is it good for a Christian to borrow and not repay, the obvious answer is no. Borrowing and not repaying hinders a positive Christian witness. It hinders trust and credibility. It violates the golden rule. But, that does not mean these verses are the end of a discussion. They are instead the beginning of our discussion.
Should A Christian Declare Bankruptcy: The Sin Stained Level
I believe God has always been a God who presents the ideals to humanity while recognizing the reality of our sin stained world. Take, for example, the issue of divorce (for illustrative purposes, not to start a huge theological debate). The Pharisees ask Jesus if it is “lawful to divorce” (Mt. 19:3). Jesus says divorce is not lawful – on the ideal level. You will not find Bible verses that discuss divorce as a good thing (Mt. 19:4-6). Nevertheless, because of the hardness of peoples’ hearts, there is a certificate of divorce (Mt. 19:8).
The discussion has now moved from ideal to the sin stained level. Not divorcing is the ideal, yet a certificate of divorce exists because God recognizes a sin stained level where the ideal is no longer possible. In those cases, the individual must then seek the best available alternative.
The reality is that many Christians are in positions where they simply do not have the money available to repay loans. Many Christians are in situations where they have creditors who are unwilling to work with them. So my question, on the sin stained level, is what are they supposed to do? They cannot make money appear. They cannot make debt disappear. As a result, bankruptcy may be their only option. In some cases it might just be the next best course of action.
Notice specifically this is not a discussion of declaring yourself bankrupt out of convenience or because it is an ideal financial decision. In those cases I believe it would be a violation of Biblical principles to refuse to pay debtors. This discussion, however, does apply to those who do not have an actual means to settle their debt.
If bankruptcy is necessary, it is important that Christians have boundaries in place to help lead them through the process.
Conclusion
Often the discussion of bankruptcy is a ‘reactive’ discussion.
A person is in debt, does not have the money necessary, and is not receiving any mercy from a lender. However, it would be better to devote our energy to discussing the question should a Christian make decisions that might put them in a place where it will be necessary for them to declare bankruptcy? The answer to this question is no. This is a ‘proactive’ discussion where we can help people avoid getting into a place where the ideal is no longer an option for them. People often are not blessed by the processes. Thus, the next important question is what can Christians and churches be doing to help their members and community avoid this situation?
Photo Credit littledan77
Any thoughts on this analysis of bankruptcy? What do you think churches and Christians can be doing to help people avoid situations of bankruptcy?
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{ 4 comments… read them below or add one }
I would like to comment on this. I am a Christian and had to file bankruptcy, it was either that or be evicted from my house. I’m married with two young children. This was not something my husband & I took lightly, it was done as a last resort. Over a two year time span he lost 75% of his pay; he is payed 100% commission so if the work isn’t there he doesn’t get paid and since we live in Michigan it’s not like he could leave his job and find a better paying one. No matter how much we cut expenses, we still were unable to pay for our house & cars by the end of those two years. We had asked for our lenders to work with us and they were unwilling to work with us so we kept paying as much as we had and they finally gave up on us and were ready to come & reposses our cars & evict us from our house. It’s not something my husband and I are proud of by any stretch of the imagination and it’s not something we decided to do on a whim. This was the work of many hard choices & decisions made over two years. I have a whole new outlook on people who find themselves in that position because not everyone gets there by buying whatever they want on credit.
Craig,
Thanks for your thoughtful and sensitive way of dealing with this issue. I like your “ideal” and “sin stained” levels, and the issue of divorce is an apt analogy. I think the previous comment from JMC74 shows us how sometimes Christians just don’t have any other choices.
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@JMC74 – Thank you for your comment. I think you illustrate perfectly what I hope is the point of this post – there are circumstances where bankruptcy is inevitable. One thing I should have emphasized more is that on this ‘sin stained’ level the ‘fault’ does not necessarily fall on the individual. At times it is simply part of living in a sin stained world that is not yet a full reflection of God’s ideal.
Typically those who have gone through a bankruptcy wish never to repeat the process – it is stressful and painful. Not at all what God intended, but in this fallen world many times we experience life as ‘less than ideal’. Thanks also for pointing out that not all bankruptcies result from overspending.
I’m glad you shared your story because it gives a wonderful background through which to read and understand this post.
In my opinion, your article strikes a good Biblical balance on the issue.
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