Bankruptcy and The Bible

Bankruptcy may be a modern-day term, but the Holy Bible also has some verses that match with today’s bankruptcy code. It is interesting to know how bankruptcy and the Bible have many elements that coincide strikingly. Be it the idea of eliminating debts, permitting the borrower a new beginning and allowing the debtor to keep or forego certain assets, many modern life situations can be seen in the Bible. Just like the concept of helping someone manage or restructure his/her debts; retain few assets while letting go of the material aspects to regain freedom and peace of mind. Let's have a detailed look at some of the facets of bankruptcy that are mentioned in the Bible to find out the evident correlation between the two. So here are some of the crucial points that must be kept in mind:

New Beginning

It is said that the common purpose of bankruptcy is to give the loyal and honest debtor a fresh beginning. And they deserve it owing to their circumstances which might have changed from the day it was originally agreed upon. We all know that life is very uncertain and unpredictable. Money is not far. We all long for money and they are in abundance as long as you enjoy it responsibly. But what matters the most is how honestly you accept your mistake, learn from the past and be willing to strive towards a better future.  In Biblical times if you were not in a position to pay your debts, you could become a servant and the wages earned were applied in settling all the debt you owed. But once you cleared the dues and paid off your debt, you also received a decent compensation to allow you to function and rebuild your life positively. This is found in Deuteronomy 15:12-13.

Relieve or Discharge

It is always considered a good deed when one repays his/her debts. The Bible clearly recognizes and teaches us, that may not always be possible and hence provides a mechanism for discharging the debt. A mention of this can be found in Deuteronomy 15:1-2 which states:

At the end of every seven years, you shall grant a release. This is how it is to be done: Every creditor who has lent anything to his fellow shall release his authority; he shall not require it of his brother, because it is called the Lord’s release.

Exceptions/Exemptions

Today's bankruptcy system has evolved and is a progressive step towards the way debtors were treated in ancient times and also through the industrial revolution. But now, a debtor is given a discharge and is also allowed to keep certain assets post the case is submitted. These types of assets that one can keep are often termed as exemptions. All the states of America allows a debtor to retain certain tools of his trade - be it cash, or some other essentials to maintain himself after the legal proceedings are over. The Bible also talks about the same tenets of humanity and financial management.

Reorganization

The Bankruptcy Code, particularly Chapter 11 and chapter 13 allows businesses, or even individuals to recollect and reorganize their debts in a manner that they can continue to function and manage their living. The Bible says we are all here to assist and uplift those struggling financially and do our bit so that they too can come to terms with life, and honor their living. The expression "support him" clearly means- do not let him fall behind because then, it will be difficult to lift him. Both the Bible and bankruptcy have stark similarities when it comes to dealing with finances and reorganizing someone’s life. 

Conclusion

Bankruptcy, as perceived otherwise, is not something to be shameful of. It is a way to get back on your feet and move forward in life with courage and dignity. The very same concept of a discharge of debt is part of the Biblical tradition as well. Therefore, one must not hesitate to seek support when it is available. And you can have that support from your bankruptcy lawyer. He will advise you on how to take things forward, and guide you through the whole process. He will present your case in the court and help you get out of the situation as soon as possible.