Bankruptcy And The Bible: What Does God Say?

Before I start, let me say that I have been in deep financial debt but have never been in a position where I could not pay my bills. It has been difficult for me to watch my family go through it. Keep in mind that God is always with you. He promised He would never abandon you or forsake your faith – ask Him for His help.

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What does the Bible say about Bankruptcy?

God’s laws are superior to all national and local laws. It is legal for people to file for bankruptcy, but that doesn’t necessarily mean it is God’s best.

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Every person has a unique situation. The decision to file bankruptcy must be carefully considered. Many people are tempted to file bankruptcy out of convenience.


Although the Bible contains several verses on money, it does not specifically mention bankruptcy. It does say that we must repay what we owe…

21 The wicked borrows and does not repay,
But the righteous shows mercy and gives.

Psalm 37:21

It is better to not make a vow than to pay it.

Ecclesiastes 5:5

Problem with bankruptcy is that the Government is telling you that you are not responsible for your bills. Most businesses you owe money to would like to collect payment in most cases. This is a disservice to the companies to which you owe money. The borrower/buyer has promised to repay, but the bankruptcy allows them to end the agreement.

I recall selling a bass guitar for $900 at a music store, and the owner tried to sell the bass without paying me. I finally received my $900 from the owner after my uncle went down and had a man-to-man talk with him., but I never saw him again. These stories are common; everyone knows it is not fun to be treated unfairly.

This is what happens to all businesses when someone files for bankruptcy. Although I’m sure most of them are creditors or other lending institutions, this is no excuse not to pay them what they are owed.

It would be different if the businesses forgave the debt. This is not often the case.


I’m drowning in debt, and BANKRUPTCY is my only option!

God sees beyond the intentions of men and can discern what is going on in any situation. He can see how people end up with $250K of medical debt. Whether this person is comfortable filing bankruptcy or not, I believe God is seeking out opportunities to display His Glory.

Hebrews 11 is filled with many godly men who believed God could accomplish what seemed impossible. They would not have seen the miracle if their faith had not been stretched.

God is great at helping us get out of difficult situations we find ourselves in or those that others put us in. Ask God for His help, and He won’t let you down. Be prepared to fight to get rid of debt. It is going to take a lot of work. It will not be easy; just because God supports you does not mean it will be easy. You can rest assured that God will reward you if you follow His instructions (even if it takes longer). It’s worth it.

For practical steps, I’d recommend articles on getting out of debt. You can also go to the library to read Dave Ramsey’s Total money makeover.

Many people believed that bankruptcy was the only option. This book has been a huge help.

How Can I Use Debt Management To Make Money?

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The best approach I believe you should adopt is:

  1. Do everything you can to pay off your debts
  2. If this is still not enough, you can always use a trusted debt management company
  3. Bankruptcy should only be considered as an option last resort.

Bottom line – Ask god if you need help, and be open to his answer.

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