In today’s society, many Americans avoid filing bankruptcy because of guilt. The topic of a bankruptcy has become an emotional one and not one of common sense. There are many people that are struggling to make their monthly payments today and realistically should be filing for bankruptcy to stop all the craziness. Guilt is a powerful emotion and creditors know how to prey upon that. If they can keep someone feeling bad about themselves for their financial faux pas’s, they can get them to continue making minimum payments for an eternity. Much of the debt that Americans are carrying will be impossible to pay off in my lifetime. Currently, Americans have over $800 billion in credit card debt alone. Add to that, student loans are topping $1 trillion and the total consumer debt is right about $3 trillion. Deep down Americans have been raised with Christian values and believe that they need to pay their debts. This is noble and true but sometimes there are circumstances that just make filing bankruptcy unavoidable. Creditors would love Americans to believe that there is no way out other than paying the debt, but Congress created bankruptcy to help good hard working Americans have a way out of unsustainable debt and get a fresh start on life.
Even though the moral fabric of the US is quickly declining, many Americans fight the dilemma of doing the right thing even at their own expense. That’s why many people ask the question, “” The Bible has a lot to say a about bankruptcy filing and it even shows an old expressions that many people use like “robbing Peter to pay Paul.”In Deuteronomy 15:1-2 it 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, his brother, because the Lords release has been proclaimed.
When Congress wrote the bankruptcy laws, this was one of the verses they used to put into law as a way to allow businesses and citizens alike to have a second chance being released from their debts. It’s interesting that until the bankruptcy code changes in 2005, one was able to file for bankruptcy every seven years under Chapter 7. Now, after the changes a person can file Chapter 7 bankruptcy every eight years. Also in the Bible it speaks of rulers charging exorbitant amounts of interest when loaning money. Many people became in bondage to these wicked rulers because of this. It sounds almost like déjà vu to what is happening in America today. Many Americans are saddled to unsustainable debt and are persuaded by guilt to not file bankruptcy. Many good hard working people destroy their lives while trying to do the right thing. When times get tough, they should consult a bankruptcy attorney to discuss their options. GOD doesn’t want individuals to be in bondage to anyone or anything, including debt. People need to learn how to become debt-free and break the bondage.