Does The Bible Significantly Forbid Bankruptcy

In order to fully understand the complex issues underlying a Chapter 9 bankruptcy, it is necessary to comprehend the unique United States constitutional challenges to municipal bankruptcy. The main constitutional issue can be boiled down to a clash between State sovereignty over its municipal entities as protected by the Tenth Amendment, and the necessity of a federal bankruptcy system. Any power asserted by a federal bankruptcy court over a State municipality can, if taken too far, interfere with the State’s constitutional right to control its municipality. It is this clash of State sovereignty and federal bankruptcy power that is the essence of Chapter 9’s unique construction.

Thank you Danika for sharing your post, I agree with a lot of things you discussed regarding Carl’s situation. Carl and his family knew they were living well above their means before even getting behind in bills. Carl would have known this based on calculating how much he is spending, unless he was just spending every dime without calculating. I feel he is not behaving in a Christian manner and just going through life living without thinking about the consequences of his actions which he is now paying for. The Bible says “At the end of every seven years you shall grant a release. And this is the manner of the release: every creditor shall release what he has lent to his neighbor. He shall not exact it of his neighbor, his brother, because

10. Why, do you suppose, the Jewish merchants and moneylenders were hated by the Christians?

One cold morning Sam Black woke up with aching chest pain. Troubled by this new condition he went to see his Heart Doctor. Little did Sam know that hours later he would be lying on the operating table in route for a triple bypass surgery. The surgery went as planned, but it was not the last of them. Sam was sent to many specialists and rehabilitation centers, building a large bill, which they had no money to pay them with. He still pays several grand a year for the medication he is prescribed. Years after the operation Sam and his wife, Elsie, have narrowly escaped foreclose, however the most problematic debt they have is the hundreds of small term loans with interest rates in the triple digits. Elsie once said in an interview regarding

Financial leverage is a company's ability to pay its debt. It refers to the use of debt with the intention of increasing the potential return of an investment. This debt can increase returns on shareholders in good times and reduce them in bad times (Brealey, et al., 2012, p. 92). A Christian practicing in a financial advisor capacity is morally obligated to warn companies or consumers against becoming indebted if they are at a high risk of default. According to Liang (2007), biblical teachings provide many insights into the excessive use of debt in financial transactions. As confirmation, in

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income is known as Chapter 13 bankruptcy. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

Through this article Dave Ramsey talks about some of the lies people tell us. Such as, “debt is a tool that should be used help create prosperity” (The Truth about Debt, Ramsey). He talked about how the bible has nothing good to say about debt. He also talks about how he believed the lies about debt when he was going to school for his career in real estate. He lost everything he owned and became bankrupt. Through this time he found a verse in the bible that said, “The rich rule over the poor, and the borrower is slave to the lender” (Proverbs 22:7 NIV). Ramsey believes that people can live a debt free lifestyle with Gods help.

If I was in this situation, I am honestly be a goner, I’ve listened to stories who have gone through a lot of debt and escape barely to continue with their lives. I would be infuriated and stressed constantly to keep a roof over my head.

This book is written by Bruce H. Mann and published by Harvard University Press in 2002*. It is about the relationship between creditors, debtors and society culture underling the American bankruptcy act in 1800 and the new republic trends.

Dear Carl, I would like to start by reassuring you, that the Bible does not forbid borrowing or filling bankruptcy to a degree. However the way in which you borrowed, was not advised in the Bible as seen in (Prov. 22:7 NIV) “The rich rule over the poor, and the borrower is slave to the lender.” However the borrowing of money is permissible when used for the right reasons, (Grudem, 2003, para. 23) “In borrowing and lending, we can reflect many of God’s attributes. We can demonstrate trustworthiness and faithful stewardship, honesty, wisdom, and thanksgiving.” As you can see Carl the Bible doe not forbid you from borrowing, it is encouraged when done for the right reasons. Now to the issue of bankruptcy, what bankruptcy means is you are basically

Although the main question of this paper is whether to continue a business relationship with Marshall, the issues involved in making both legal and biblically moral decisions surround whether entering into an output contract with the Texas company is a viable opportunity based on the current business relationship with Marshall. The ongoing trade of Muscadine grapes between Marshall’s health food products business and my family produce company has been mutually beneficial; however, the output contract with the Texas company would be a more advantageous investment decision at this time. At the same time, Marshall’s visible anger and insistence of our honoring a requirements contract, which was not legally authorized, has forced me to seek biblically-sound methods to legally dissolve this business relationship preferably through the use of some form of mediation or arbitration.

The parable of the shrewd manager is the parable appears only in Luke’s Gospels and really exemplifies how much Jesus is against dishonesty. This was common during the time this parable was being taught, especially involving Jewish merchants. The parable talks about a rich man who had a manager, whom the rich man accused of not performing his job. Being afraid of losing his job, the steward concocts a plan to impress his master and decides to collect all the debts owed to the rich man from others. He sat down each debtor and had them reduce what they owned the rich man.

Case Study: Your long-time friend Carl comes to you with a serious problem in his life. He is a believer, and he wants your advice. For years he and his family have lived above their means. They did this by continually refinancing their house and rolling their credit card and other debt onto their home mortgage. However, now that real estate prices are no longer rising but actually falling, Carl can't refinance anymore and can't pay his monthly bills as they come due. He is in a real credit crisis. His creditors are calling him threatening lawsuits, garnishments, and other unpleasant things. One of his friends at work said that he should file bankruptcy. He comes to you for advice from a Christian perspective. In particular, he wants to

If you're amongst the smaller and have devastating debts, you're probably scared stiff. You feel stupid, cry at night, and fight with your family. Going bankruptcy is a bummer. So listen up. This is how to get your life back.

Henry has just graduated from college. After graduation, Henry finds gainful employment. Henry accumulated student loans totaling $45,000.00 and also has a number of credit cards with a total of outstanding debts being $25,000.00. In addition, Henry purchases a new car and also buys a home. Henry is involved in a car accident and is unable to work. Henry incurs mounting medical bills and is unable to pay his debts. Henry contemplates filing a bankruptcy. Henry stops paying his house note, becomes in serious arrearage in all of his debts. Henry transfers his car to his brother for a nominal amount. Henry runs all of his credit cards to the maximum. Henry rents a storage unit under another name to hide some valuable assets. Discuss the above in terms of voluntary/involuntary bankruptcy, what chapter might he be eligible for, estate, trustee, exemptions, distribution, discharge and reaffirmation. Also, be sure to include the "means test".