Question:
Is it wrong to file bankruptcy?
Answer:
This question is often answered with emotionalism and opinions. Yet, we must turn to the principles within God’s inspired Word to properly answer it. According to God’s Word, declaring oneself as bankrupt is a sin for several reasons.
First, it is a failure to keep our word or contract. James 5:12 says, “...let your ‘Yes’ be ‘Yes,’ and your ‘No,’ ‘No,’ lest you fall into judgment.” When one agrees to borrow money—for a house, car, particular store—it requires some sort of a contract. If we promise to pay back and break such a promise, we have said “Yes” but acted “No.” This is a direct violation of James 5:12. Romans 1:31 also condemns “covenant-breakers” (KJV, ASV) which the New King James Version translates as “untrustworthy.”
Second, bankruptcy is a form of stealing. What else can it be when I take someone else’s product then refuse to fully pay that individual back for that which is in my possession? Psalms 37:21 says, “The wicked borrows and does not repay…” Some may argue that bankruptcy is not sinful because it is legal. Yet, right and wrong should not be determined based on governmental standards, but the standards God has set forth. In a context dealing with money, Paul wrote, “Owe no one anything except to love one another…” (Romans 13:8). Ephesians 4:28 says, “Let him that stole steal no more…”
Finally, it is a violation of the Golden Rule. Matthew 7:12 says, “Therefore, whatever you want men to do to you, do also to them, for this is the Law and the Prophets.” How do you feel about those who promise to pay you back but refuse to do so? A Christian engaged in such irresponsibility tarnishes their reputation and influence.
July 2007