Should Christians be declaring bankruptcy? I do not believe they should. Psalm 37:21 says, The wicked borrow and do not repay, but the righteous give generously. The Bible also says, Owe no man anything, but to love one another: for he that loves another has fulfilled the law. (Romans 13:8)
The reason there is so much bankruptcy today is because people want what they want when they want. They no longer want to save up their money and wait patiently until they have enough to buy something. They just whip out their credit card and buy what they want.
Then when they can no longer pay their bills, they declare bankruptcy and expect others to pay off their debt. This is not the way Christians should be living. We should be living within our means and only buying what we can afford.
I was raised to always live below what you earn so you can save. We have always lived that way. We bought everything with cash except our homes which we paid off as soon as we could. The rich ruleth over the poor, and the borrower is servant to the lender. (Proverbs 22:7) I don't want to be a slave to anyone if I can help it!
Laine was one of my first mentors. Her husband never made over $30,000 a year yet they have paid off their home in San Diego. She was a full-time mother with five children and never worked outside of her home but she sure works hard inside of it.
Here are her thoughts on bankruptcy ~
Bankruptcy. It is a word now that Christians are not ashamed to utter. Along with non-Christians we have bought into this world's lies that we must have what we want when we want it at another's expense. No restraint whatsoever. Even though we may not believe that when we are charging and borrowing, it is so when we no longer consider paying it back. Years ago our great grandparents would have never considered bankruptcy. They would rather have sold everything they had than to bring this word on their good name.
Today we have Christians declaring bankruptcy while their children are still involved in organized sports, or while they take vacations, or while they have private music lessons, or while they send their children to camp or private schools, or while they continue to eat out, or while they take their clothing to the cleaners, or while they continue to buy what they think they need, or while they pay to have their cars washed, or while they buy whatever they desire at the grocery store, or while they make many long distant phone calls, or while they operate two vehicles, and/or while they keep everything they "own" without a thought of paying back the debt it took to get it into their house.
Teach your children to be content with what they have and to live below their means. For godliness with contentment is great gain. (I Timothy 6:6)
Logging you in...
Susan · 643 weeks ago
Tara J · 643 weeks ago
Tommie · 643 weeks ago
However, I understand that many bankruptcies are due to extremely
high medical/hospital bills that there would be no way that could be
repaid. In my opinion, it's just not right for a family's financial
future to be ruined because of outrageous medical costs. This is
the main reason that I actually support the idea of universal health care
coverage for all.
Pam · 643 weeks ago
Victoria Wojtowicz · 643 weeks ago
Lari · 643 weeks ago
Liz · 643 weeks ago
I drive an 8 year old car that is paid for and my husband and I don't have credit cards.
You wouldn't believe (or maybe you would?) how many weird looks we get when people find out that we don't have credit cards.
"What happens in an emergency?" is usually their question.
I am polite when I answer and I try not to shove my convictions down their throat, but in my grandparents' day they had emergencies and they didn't need credit cards.
That's what they had savings for.
Getting my title in the mail after paying off my car was the biggest thrill I've ever had.
At that moment I finally understood what Proverbs 22:7 meant.
I didn't know slavery until I tasted freedom!
And to anyone who says it can't be done: I paid off my car 6 months early while making less than $20,00 a year.
Jill · 643 weeks ago
I also want to humbly point out that not everyone with a lot of debt is in that boat because of reckless, greedy spending. This economy that we're in has resulted in plenty of hard-working, responsible people losing their jobs, being unable to find work and then being unable to afford even the basics like housing, food, and medical care. I don't believe folks in this situation are being un-Christian for filing bankruptcy or using food stamps or state funded health insurance if that is their only way to begin to recover.
Cynthia Swenson · 643 weeks ago
Ken · 643 weeks ago
I think it is important to understand the difference between speaking the truth, and having grace for individual circumstances. Lori's prophetic voice (truth telling, not foretelling), gets to the heart of many issues and what God's best is for the believer. As you and I know, we do not always live out God's and there are times that the circumstances of life do challenge us, yet God;s ideals remain true.... BUT for the individual, even if it was us who messed up... there is always GRACE.
Grace is for individuals who need the exception to God's perfect will and there is plenty for all who will receive it from God, from fellow believers and from Lori :). But it still never changes God's Word nor His ideals. To speak about a hundred exceptions every time one writes is not possible, yet we all understand that there are exceptions to every rule and your circumstances surely sound like the exception.
May God's grace and his hand of great provision be shown to you and your family even this week :). You are in our prayers and we know what illness can do to wreak havoc on a family.
Ken · 643 weeks ago
See my comment below to Victoria. There is no law in speaking the truth and outlining God's clear ideals from the scriptures. Our Christian world is filled with many who want exception after exception until God's Word becomes a a "pick and choose" exercise with "grace" wiping away any of God's ideals.
God's clear intent is that we would know His Word and walk by His ideals. He provides grace for the exceptions as the blood of Jesus covers all believers head to toe... BUT to not walk in His ways does create much heartache, pain and losing out on much joy.
If believers are no longer willing to stand up for God's ideals, who will do so? Are there no prophets or preachers or teachers left who will speak God's Word exactly as it is written ... without exception?
There are many places one can run to find a "love covers all" message, but few will "speak the truth in love" not to demean anyone, but rather to train those who have yet to stumble and fall in some very important areas of life.
Your point of ignorance is well taken... and precisely why a message on money management and how we deal with money and debt is a timely issue in today's economy. Christians are called to be different... and that includes how we handle our money and pay our debts. There is no legalism or law in God's ideals... just his best for His children. When we "miss the mark" God's grace abounds and is complete, yet it still often leaves us with the earthly consequences.
It's not easy to do things God's way many times, but Jesus kind of told us that would be the case... as we take up our cross and follow him :).
Kim · 643 weeks ago
Kristin · 643 weeks ago
Kathy · 637 weeks ago
Tom · 616 weeks ago
Nice Information Lori Lots of people take Advantage of bankruptcy, but few people really need bankruptcy. I saw lots both cases in court who has need of bankruptcy and who has not need of bankruptcy.
bevmyo 2p · 529 weeks ago
One common scenario I have seen is a sole proprietor of a self-employment business who has just hung on too long hoping things would turn around. I have also seen people who had one unexpected medical crisis that has left them flooded with tens of thousands of dollars owing. So yes, it always comes down to more money needs to go out for payments than is coming in, but it's not always because of a willful and reckless abandon for more luxuries in life. It's a painful decision for people to make, especially when it means admitting your business has failed.
I have come to look at bankruptcy as a form of grace. Do they deserve to have their debt wiped out? No. Could they have made different and better decisions? Many times, Yes. But sometimes we just need grace, a fresh start, a year of jubilee, and the gift of something we don't deserve.
And remember too that there is means testing in bankruptcy now. It's not just an easy peasy matter of everyone getting their debt completely wiped out. If there is a decent income being made, the debtors must do a chapter 13 and pay something back on their debts. Some debtors in bankruptcy pay back 100% of their debt! It's just done under the protection of the court so they can have some extra time and are not harassed by creditors while they are doing it.
Ben · 427 weeks ago