No, absolutely not. The relationship between bankruptcy and religion is important because faith in God is a key part of my life and that of my staff. Obviously, people should repay their debts if they can, but it’s clear from the Bible that filing bankruptcy is an acceptable way to deal with burdensome financial problems. In Deuteronomy 15:1-2 God instructed creditors to release from debt anyone who had borrowed money. It didn’t matter whether the lender was legitimately owed the money or whether the borrower had made mistakes. The debt was to be forgiven. Period.
Mandatory debt forgiveness had a two-fold purpose in biblical times. It showed compassion and mercy to the poor, which is required to honor God, and it led to more economic stability for families and the community. Being weighed down by debt isn’t a productive way for any family to live and it prevents people from doing the Lord’s work. Filing bankruptcy to relieve yourself of debt is neither sinful nor against God’s will. This is especially true when the cause of bankruptcy is almost always something beyond your control, like medical problems or loss of a job. In short, bankruptcy is a form of grace and people of faith should embrace bankruptcy as a way of extending grace to people who need it, just as God demanded that grace be shown to debtors throughout scripture.
