Questions From Readers

● During the past year I got into some financial difficulty, and since reading your publications I have been wondering if it is proper for me to file for bankruptcy? Does the Bible say anything about this?—H. P., U.S.A.

The Bible, of course, does not discuss the modern laws pertaining to bankruptcy; it shows that persons not paying debts were thrown into prison. (Matt. 18:23-34) But from what it does say, we can get some idea as to how Christians should view this matter. So, first let us consider what “bankruptcy” is according to current laws. Then we can examine what the Bible says that relates to the subject and can determine what counsel it offers.

Many modern nations have bankruptcy laws. Though these may vary from place to place, usually they have a twofold purpose: In order to protect businessmen or creditors from someone who might run up a huge debt and then refuse to pay back as he agreed, the creditors can have him declared involuntarily bankrupt and have his assets sold or distributed as payment. On the other hand, the law works to protect an honest debtor who unwillingly gets into a position where he absolutely cannot satisfy the demands of his creditors; he is allowed to declare voluntary bankruptcy. If this happens, his assets are taken as partial payment for his creditors, but he can retain certain things, possibly his home, for example. He is then allowed to begin life afresh, without the threat of more pressure and loss at the hands of former creditors.

So these laws are intended to be protective to both parties in business or financial dealings. That some protection is needed is illustrated by the very origin of the term “bankruptcy.” It comes from Italian words meaning “broken bench,” referring to the practice during the Middle Ages of breaking up the benches or counters of a merchant who failed to pay his debts. Even more severe, under the Roman law of the Twelve Tables, as a last resort the creditors could cut the debtor’s body into pieces, each taking a proportionate share.

What a contrast were the merciful laws Jehovah gave to Israel! When loans were made to fellow Hebrews who had grown poor, no interest was charged. (Lev. 25:35-38) If a creditor went to collect a pledge for a debt, he could not dash into the house and seize whatever he wanted; rather, the debtor provided the pledge. The creditor could not take the man’s hand mill or grindstone; those were needed to sustain life. And if his garment was taken as a pledge, it had to be returned at night so he could sleep in it and keep warm. (Deut. 24:6, 10-13; Ezek. 18:5-9) True, an Israelite who was totally insolvent might lose his inherited land temporarily and have to sell himself into slavery, but the land was returned in the Jubilee year. The one who sold himself into bondage was not to be debased by slavish service, but was to be treated as an honorable hired laborer. Then when the seventh year of his service came, or the Jubilee year, if it came first, he was released and given provisions to start a new life.—Lev. 25:39-41; Deut. 15:12-15.

This kind treatment on the part of creditors surely would have moved debtors to do all they could to respond with kindness by paying their debts. In regard to giving their word or making vows, the Jews were encouraged to think before they agreed to do something; then, once made, the vow could probably be kept. (Eccl. 5:2, 4-7; Deut. 23:21-23) If one agreed to pay off a debt at a certain rate or by a set date, he should work hard to keep his word, even if he had to deprive himself of some comforts or luxuries until he did so. God showed that it was just as important for those who owed money to pay their debts as it was for creditors to avoid being greedy. For Jehovah described the man whom he approved as one “who, though it be to his loss, changes not his pledged word; who lends not his money at usury.”—Ps. 15:4, 5, Confraternity.

It is sad to say, but sometimes greedy Jewish creditors ignored the merciful and considerate spirit of God’s law. Hardheartedly, creditors made abject slaves out of men, women and children, and in time took to throwing into prison those who could not pay their debts.—2 Ki. 4:1; Ezek. 18:12, 13; Amos 8:4-6; Matt. 5:25, 26.

Similarly today, sometimes creditors become quite unreasonable in their treatment of debtors. It may be that a Christian experienced some unforeseen occurrence that made it impossible for him to meet his commitment. (Eccl. 9:11) Possibly he could pay his debts if given more time. It would be the reasonable course for the creditors to see if they could make some allowance in dealing with one who was insolvent because of misfortune, such as sickness or accident. In that way they would get their payment. But if they hound one mercilessly and try to render the debtor penniless by resorting to the law, then he might have to turn to the law himself. In order to protect himself, he might declare that he was bankrupt, his actual condition. They might force him to handle the matter in the only way they seem to recognize, the bankruptcy laws.

It would, though, be improper for a Christian to resort unnecessarily to bankruptcy as an easy way out of an unpleasant situation, whether caused by his own lack of foresight or by some bad turn of events. That would not be the morally honest course for Christians who say: “We trust we have an honest conscience, as we wish to conduct ourselves honestly in all things.” (Heb. 13:18) The Christian should treat his creditors just as he would want to be treated if someone owed him money. (Matt. 7:12) If one has a debt, he ought to try hard to pay it. Remember, God approves the one “who, though it be to his loss, changes not his pledged word.”—Ps. 15:4, Confraternity.

In fact, some, even after being legally freed of certain debts, have conscientiously felt a moral urging to try to pay off the canceled debts if the former creditors would accept payment. In this, as in many matters, Christian conscience enters the picture. Each one can decide what he personally will do, striving always to maintain a good conscience.—1 Tim. 1:5.

All of this should emphasize the importance of thinking through a business matter thoroughly before making an agreement, and of living within one’s means. An inspired proverb says: “The plans of the diligent one surely make for advantage, but everyone that is hasty surely heads for want.” (Prov. 21:5) Jesus even spoke of the wisdom of the man intending to build a tower who sits down first to figure out the expense so as to be sure that he will have enough money to complete the business venture. (Luke 14:28-30) Each one must decide personally what debts, if any, he will incur. But how many material things does one need to provide the necessities of life and to find satisfaction in living? Would it be showing the “wisdom from above” to get into a dangerous financial situation out of a desire for material luxuries? (Jas. 3:17; Luke 12:15-21) How much better to believe and act in accord with Paul’s words: “Having sustenance and covering, we shall be content with these things”!—1 Tim. 6:8.