Should Christians File Bankruptcy?
For many people, financial problems have them stressed out, while barely surviving on life from one salary to the next. They may have medical bills, student loans, credit card debt, car loans, payday loans, and more piling up on their desk. For many it seems an insurmountable task to get rid of debt and continue like this. Many turn to bankruptcy as a quick fix to their problems … but is that the right answer for Christians?
When we look at bankruptcy, we have to understand what it means to most people. Chapter 7 bankruptcy eliminates all of your debt, clears the slate, and leaves you with a damaged credit score for a long time. There are other forms of bankruptcy that allow you to restructure your debt and pay it off over a longer period of time, with a much lower monthly payment.
Biblically speaking, it is very clear that as Christians we must pay our debts (Ecclesiastes 5: 4-5) and that the wicked “borrows and does not repay” (Psalm 37:21). It may seem very tempting to start over with bankruptcy, but unless you learn to be obedient to what God wants for you and to be a good steward of your money, this will only address the symptom and not the problem. It goes without saying that many people who file for bankruptcy find themselves in financial trouble over and over again.
An obvious way to avoid this in the future is to educate yourself on financial matters. Let’s face it, we live in a country where our public education system fails to educate your children about basic financial management. Sure you probably took a history class in high school, a social studies class, and maybe even home economics … but how much of that knowledge did you apply to your life?
The Internet offers a wealth of knowledge on financial planning, budgeting, and strategies that you can use to get your financial life on track. Personally, I am a huge fan of Dave Ramsey, author of Total Money Makeover and Financial Peace University. He has a YouTube channel with tons of free tips and a radio talk show where he takes calls from listeners and gives them financial strategies.
You can also Google financial planning and budgeting and find many other great resources. Use them, use them! They are available to you, free at your fingertips. Stop navigating the troubled waters of financial insecurity and find calm seas. Do you want to know what is the best way to find those calm seas? Remember this: as a Christian (and of course non-Christian too) everything you own, from money to cars, houses, jewelry and even electronics … EVERYTHING belongs to GOD. You HAVE NOTHING, you are simply a steward of what God has placed in your care.
As long as you are here on Earth, it is your duty to do what is right and godly with YOUR things. If you are not sure what to do, learn. If you’ve already made the decision to file for bankruptcy and won’t be swayed, at least restructure your debt and pay it off over time.
Turning your back on the debt you promised to pay is NOT an option.