Is Bankruptcy a Moral Option?
79Many Christians are faced with the bankruptcy option
"The wicked borroweth, and payeth not again" (Psalm 37:21).
The Psalm seems to make a pretty blunt case against the morality of the bankruptcy option. However, while this may seem pretty cut and dry, bankruptcy is an issue that divides the Christian finance community. After all, a Christian has an obligation to live honorably. But at the same time, there are some cases where forgiveness is warranted. And so, the debate:
In the case of bankruptcy, many Christian finance advisors point out this, as reported by the Christian Science Monitor:
Christian personal finance guru Mary Hunt has a stern message for anyone considering bankruptcy: "It's absolutely legal, but it is not moral."
"I would say, 'You accepted these credit cards. You had the obligation to know what you were getting into,' " says Ms. Hunt, author of "Living Your Life for Half the Price." " 'You spent the money, and sure you had a big medical bill, but it probably would not have put you over the edge had you not already been deeply in debt.' "
However, there is another side to Christian bankruptcy. This looks at the morality of forgiveness. After all, in Deuteronomy 15:1-11, allowance is made for the forgiveness debt every seven years. After struggling and trying to repay debt, and being unable to, some Christian fiance advisors suggest that bankruptcy may be okay. Again, the Christian Science Monitor:
In Psalm 37, "the psalmist is talking about [cases where] borrowing money and not repaying it becomes a business strategy," says Gary Moore, a Christian investment adviser in Sarasota, Fla. By contrast, he says, single women should not worry about declaring bankruptcy, for instance, after using credit cards to feed their children.
"Those people ought to go to bed every night knowing that God has granted them debt relief," Moore says. "And they're not, because they hear this garbage [from antidebt Christians]. That's what Jesus called placing heavy burdens on his flock."
So what's the answer? Well, it depends on your moral outlook. After all, we have a moral obligation to be good stewards of what God has given us. On the other hand, there are many circumstances beyond our control that can lead to crushing debt. And in some cases credit card companies and other lenders use practices that are predatory.
However, it is pretty clear that before filing bankruptcy, it is important for Christians to carefully consider all of their options. Have you tried debt management? Debt reduction? What are some of your options. Can you make other arrangements with your creditors. Besides, with the bankruptcy laws that went into effect in 2005, you should realize that having all of your debts erased is a rather slim proposition. You will likely have to repay a good portion of what you owe, even if you do file for bankruptcy.
Ultimately, the decision is one you make between you and God. However, keep in mind that when you borrow money to pay for things you do not need, you are already on shaky moral ground.
Money Matters
- Christian Science Monitor Bankruptcy Story
A look at whether bankruptcy is moral. - Bankruptcy Survey Results
Results of how Christians feel about the morality of bankruptcy. - Ordering Your Personal Finances
Getting your personal finances in order. - Steps to Aggressive Debt Reduction
Before declaring bankruptcy, see about aggressive debt reduction and other debt management ideas.
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The wicked borroweth, and payeth not again" (Psalm 37:21).
So easy to pick verses from the Bible to support just about anything. .
I doubt the majority who file are "wicked"
Mary Hunt must belive in debtors prison. The Bible speaks much of taking advantage of the poor and that is what many big corporations do with their dirty tricks.
Imagine a person who has CC debt sold to a collection agency. By the time this debt is sold for pennies on the dollar many consumers have plodded along paying for years, but were unable to pay the balance so little of what they sent was applied to principle. Now the debt collector has this amount and adds their own interest, but fails to tell the person they are charging interest! Meanwhile, this person sends monthly payments to the collection agency fully believing this money is being applied to reducing their debt. The collection agency loves it. They have a small cash cow who is sending in monthly payments and is completly in the dark! This person is fearful too, which is just fine with the debt collector. They have this person just where they want them!
I personally don't feel collection agencies should even be able to add more interest, but at the very least it should only be for the amount they purchased the debt for. Adding interest to the full amount of the debt and failing to tell a person about it when they make monthly arrangements is what is WICKED!!!! CC Co's who play dirty tricks like Universal Default and double cycle billing are WICKED!
I don't blame anyone who files bankruptcy to escape from this debtors prison.
I see who the wicked ones are, and those Christains who like to spout off this Bible verse are probably in the same pockets of the big corporations that many politicans are! Did some of these high profile "ministers" and radio TV personalities get shows and universities by the generous members who put lots of $$$$ in the collections plates passed on Sunday? Doubful!
Wake up people.... those who are being bought by big business are not on the side of poor and middle income people.
I would never attend a church where the attitude about bankruptcy was
based on one verse :
The wicked borroweth, and payeth not again" (Psalm 37:21).
That is an insult to most people who have been in desperate situations. Even if that situation was from their own foolish mistakes. Everyone deserves a second chance.
I highly recommend bankruptcy to anyone being held hostage with loan shark fees. YOU AND YOU FAMILY COME FIRST!!
As I said, it is quite a debate! Feelings run high on both sides.
Ralph Deeds says:
3 years ago
Two of the most common causes of bankruptcy are medical bills due to serious illness and credit card debt which, in many cases, results from unscrupulous if not illegal practices by credit card banks and companies such as double cycle billing of interest, using low 2% interest rates to lure unsuspecting victims to transfer their balances and then jacking up the interest rate to more than 20% the first time the individual is a day late with a payment or even a day late with a payment reported late to a credit bureau by another creditor. This practice is called "universal default."
Moral philosophers tell us that "ought implies can," i.e. that to logically say that someone ought or is morally obligated to do something or not do something implies that they are ABLE to do the prescribed act. It is morally, logically, philosophically meaningless to say that someone is morally obligated to do something they are incapable of doing. In the case of bankruptcy due to major illness and big bills from the for profit medical care industry, I would argue that an individual who doesn't have the resources to pay the bills need feel no moral constraint against declaring bankruptcy. That is precisely what the law was designed to provide. Likewise, individuals who find themselves in the clutches the unscrupulous "tricks and traps" of a credit card company should feel no moral compunction over declaring bankruptcy.
I'm not suggesting that bankruptcy is always a moral option. Clearly, an individual who hides assets or intentionally goes on a credit card buying spree with the intention of avoiding payment by declaring bankruptcy is not acting morally. The key is the intention of the individual and whether or not he has the ability to repay his or her debt. The bankruptcy law was changed last year or the year before to make it much harder to declare bankruptcy. The credit card/banking industry were instrumental in getting the law changed in ways that many feel are unfair to debtors.