Christianity and Bankruptcy Protection
The Relationship Between Christianity and Bankruptcy Protection
Christians have had a troubled relationship with the concept of bankruptcy for a long time. When a person’s financial situation is completely out of control, bankruptcy provides an opportunity for them to restart their financial life. Bankruptcy is, at its essence, a temporary relief from one’s obligations. It enables people to completely wipe their debts in the case of chapter seven bankruptcy, for example. As a result, they will have to deal with the credit ramifications of their action for the foreseeable future. It will appear on their credit report for years to come, making it difficult for them to obtain additional credit, housing, and other opportunities in the future. Of course, there is the critical distinction that a secured loan will be recovered through the property that the person has used to incur the debt in the first place. The creditor will be forced to scramble if the debt is not secured. Credit card firms, for example, would lose money because they would be unable to collect the money they owe. The move provides protection from collection attempts and phone calls for those who choose to file for Chapter 7 or Chapter 13 bankruptcy. This is a wonderful development for many people who receive a large number of phone calls and mail each year. In short, individuals find themselves unable to work or enjoy their lives as a result of the stress of mounting debt that they are unable to repay.
Other types of bankruptcy permit debtors to restructure their obligations. They next devise strategies for repaying their debts to creditors in accordance with the strategy. It can be an effective way for the court to monitor debt repayment attempts while yet allowing the creditor to maintain control over their financial situation. See Stephen B. Parson, The ABCs of Debt: A Case Study Approach to Debtor/Creditor Relations and Bankruptcy Law (2d ed. ), for more information (2013).
Some Christians feel that Christians should not declare since doing so would be a surrender of their responsibilities. To be more specific, some individuals contend that Christians are required to pay their debts because a debt is actually just a commitment to repay money. Declaring bankruptcy in order to avoid paying the obligation would be considered a breach of honor. Declaring bankruptcy would, in fact, be considered a sin under this system of thought.
A close examination of the Bible, on the other hand, reveals that multiple passages provide biblical basis for declaring bankruptcy. The Bible expressly condemns those who would take advantage of the poor by using forced financial measures to achieve their ends. Jesus, of course, went into the Temple and overturned the tables of the money changers, a clear hint that the excesses of banks and their exploitation might be considered a sin against God by the Jewish people. It is also important to note that the Bible says that those who find themselves in debt should be able to get some form of assistance. Every now and again, debt was automatically discharged by the system. This was done in order for people to be able to recover from their financial difficulties. It was never designed for a system to exist like the one that exists now, in which banks and creditors are free to charge exorbitant interest rates and then tie a person to their debt for decades on end. At the period of the Bible, this would have been considered unconscionable. Certain sorts of collateral could not be collected on at the time, safeguarding customers against predatory lending practices on the part of credit card firms. It is reasonable to conclude that persons should have the ability to discharge their debts through bankruptcy in light of the foregoing information. In circumstances where they are legitimately unable to pay back their debts, it gives a means for individuals to escape out from under the thumbs of predatory creditors. People, on the other hand, are urged to be respectable by the Bible and Christ. As part of their obligation to repay their debts, they should make every effort to do so. If the debt is something that can be paid back, it should be.
References
Author Stephen B. Parson’s book, The ABCs of Debt: A Case Study Approach to Debtor/Creditor Relations and Bankruptcy Law, 2nd edition, is available online (2013).
