Sunday, July 06, 2008

Should Christians File for Bankruptcy?

I am often asked what the Bible says about Christians filing for bankruptcy and it a serious spiritual struggle for many. Christians often struggle with feelings of guilt that creditors will not be repaid. Others feel that they have failed God by not being good stewards with their money. Others believe that the Bible condemns bankruptcy. I found answers to many of these questions is an excellent article written Matthew B. Tozer, Esq. and Ben E. Lofstedt, Esq.

The authors begin with the premise the Bible expressly grants permission for Christians to file bankruptcy: "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).

They go on to discuss a number of Old Testament and New Testament passages that discuss concepts of sin, mercy, forgiveness and equity. The authors ultimately conclude, correctly I believe, that bankruptcy is biblical and spiritually available to Christians. However, the ultimate decision to file for bankruptcy and the type of bankruptcy to file must still be made after prayerful consideration to seek guidance from God regarding what decision he would have you make.

Although the subject does not always come up with our clients, we are a Christian law firm. We are a bankruptcy and debt relief agency. We help people file for bankruptcy. We are sensitive to the Biblical and spiritual issues implicated by filing for bankruptcy. Please contact us if you need further assistance is making the decision to file bankruptcy.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.