Bankruptcy petitions are climbing at an all time high due to the current economic situation. Some people are using this as an easy way out. It is viewed as an excuse to start anew, but in reality, with a little sacrifice in lifestyle, this can be avoided and is not an ethical solution.
But what if you have sacrificed all luxuries--you sold the house, you sold the boat, you turned off your cable, and you have forgotten what eating out is like-what do you do?
It's possible you have thought about bankruptcy when the phone calls and letters overwhelm you, but you think to yourself, "That is unethical and just plain wrong". Over the years, I have heard many people cast judgment on those who file for debt forgiveness. It always bothered me because those who judged harshly did not know the circumstances that led to that decision--and now, for the first time, you might understand a little bit better. You may even feel sorry for thinking that way. If you are at the end of all options and you continue to spiral downward, you may want to make an appointment with a bankruptcy attorney and get a free consultation.
As good citizen with high morals and or religious values, you are having a difficult time with this decision. Yet at the same time, you are dealing with depression, anger, guilt, and probably bitterness--you feel trapped and hopeless. Nevertheless, there is hope and the God of love and understanding has given us examples of debt forgiveness. One in the Old Testament and one in the New Testament for starters. Some people are not aware of this, but our bankruptcy laws were actually modeled after the biblical principle of debt forgiveness found in the Old Testament, known as the year of Jubilee.
The year of Jubilee is a custom ordained and implemented by God for the Israelites. As a people, they were to buy and sell property and till the land according to the Sabbath rule: For six years, they may buy and sell property and harvest the crops. In the seventh year, they were to be at rest and not harvest the land. When seven yearly Sabbaths had past, (49 yrs) they knew the 50 th year was the year of Jubilee. (For the complete story, read Leviticus Chapter 25.)
This year of Jubilee was designed for those who had fallen poor and sold themselves as slaves to those who had work for them to do and food for them to eat (Much like today's employer/employee relationship). In many cases, they sold their homes as well and had to live with their masters. These people would serve for seven Sabbaths and then in the 50 th year, the masters were to let them go back to their homes and they no longer had to serve. They were truly free, as their master was not to sell the home, but rather, give it back to their servant. The very word Jubilee means freedom.
In the New Testament, we have the parable of the unmerciful servant. In context, this story is about forgiveness of sin, but Jesus used it because the people of his day were well acquainted with debt-forgiveness:
"Therefore, the Kingdom of Heaven can be compared to kings who decided to bring his accounts up to date with servants who had borrowed money from him. In the process of time, one of his debtors was brought in who owed him millions of dollars. He couldn't pay, so his master ordered that he be sold-along with his wife, his children, and everything he owned-to pay the debt. But the man fell down before his master and begged him, please, be patient with me, and I will pay it all.' Then his master was filled with pity for him, and he released him and forgave his debt." Matthew 18:23-26. (NLT) Again, in context, Jesus is speaking of God's forgiveness of sin--explaining that when we receive forgiveness, we better be extending it to others as well. Hence, the parable of the unmerciful servant. (For the complete story, read Matt 18:21-35.) I love how Jesus always used real situations of the day so that the hearers would be able to relate to the Gospel message.
After examining these two stories--and there are more, we can conclude that it is morally acceptable to file for a chapter seven bankruptcy if all other options have failed you. Yes, it will remain on your credit report for 10 years, but at this point, your credit report is already tarnished. It will take time to get back on your feet, and you shouldn't be thinking about credit cards and new vehicles, so it is okay.
Actually, if your bankruptcy filing is due to medical expenses and loss of employment, creditors are likely to extend a legitimate need for a loan--such as a vehicle or home. But you must be aware of the vipers out there who will gladly give you a loan 3-months after you file. They are more than happy to rob the anxious buyer by charging 30% interest or more.
Let's face it, there are times we all need forgiveness-even debt forgiveness to get a fresh start. Even if you find yourself over extended in debt because of frivolous spending, it is never too late to learn from your mistakes and do it better next time around.
Lastly, if you make a decision to file for complete relief through chapter seven, you can always go back one creditor at a time and pay them back on your own accord when things turn around.
To find out if there is still time to avoid bankruptcy, I invite you to read a previous article on dealing with your creditors before bill collector's deal with you, by clicking
here.
Teresa Ortiz - all rights reserved
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