Is it a grave sin to file for bankruptcy--

[captainmike]

unless it is absolutely necessary for you to do so?

 

[Robbinson]

unless it is absolutely necessary for you to do so?

I think certainly if it isn’t absolutely necessary for one to do so, since we are to be responsible for our debts to others. That being said, in extreme circumstances, availing yourself of this civil remedy (which is not unlike the OT remedy providing for relief from debts (every 50th year was a jubilee year forgiving all debts) would not, I think, be a grave sin. But that’s just my thinking it through - I suppose this is a question for a priest.

Blessings,

Brian

 

[LilyM]

Maybe not a sin - but not a wise move. I do know bankruptcy apparently has all sorts of implications in the short and medium term that a lot of people who file are not fully aware of.

There are financial advice services out there helping people who are in debt - you want to get really good advice from someone who really knows what they’re talking about (in other words not me ) before filing for bankruptcy.

 

[Ridgerunner]

Hard to answer without knowing what you mean by “absolutely necessary”. It might not be “absolutely necessary” in a life-thratening sense, to file bankruptcy if you could imaginably grind through heavy debt burdens through years and years and years, depriving your family of many things. But the bankruptcy laws are overtly designed to give people “another chance” when they have become so burdened that an unreasonable portion of their income goes to debt repayment.

It is not too easy to do bankruptcy nowadays. If you can qualify for a “Chapter 13” plan pursuant to which you substantially pay your debts, stripped of interest and penalties through a payment system, you are obliged to do it. But you are allowed a budgeted amount for food, clothing, schooling, healthcare, transportation, rent or home payments, etc.

People who qualify for Chapter 7, which is a complete debt wipeout, pretty much need to do it, or they wouldn’t qualify to do it.

I do not believe people should reduce themselves to absolute destitution for the sake of their creditors. No.

 

[StCsDavid]

unless it is absolutely necessary for you to do so?

I would say that filing bankruptcy is morally neutral. The question is, what is in your will as you do it? If your will is to cheat your creditors out of their money, then you are using the law in order to steal. If, however, you’re using the law as it was intended to be used, then I fail to see any sin. In general it has some pretty long-lasting implications; however, I’ve known some very decent folks who have had a perfect storm of events hit them and bankruptcy was indeed the best option. I would suggest one talk to a credit counselor first for advice. A bankruptcy attorney will only be interested in getting you through the process regardless if there might be other alternatives.

 

[royal_archer]

I don’t believe that absolute necesity is the best criteria. To take money and not pay it back is stealing no room for discussion here. However a loan involves payback over time. If that payback is unavoidably interupted and every effort is made to resume payments I do not see it as a sin per say. Now risky behavior that leads to an interuption is another issue. Taking out excessive debt is another issue. So I think you are ok if you keep for yourself what is absolutely necesary to survive and pay back the debt with the original interest and additional interest to cover the added time. Bankrupcy for the sole purpose of managing how you pay back would be ok but bankrupcy for the purpose of avoiding payment is a sin.

 

[Joe_Kelley]

Bankruptcy can effect your eligibility for some jobs. I know someone who missed out on a good job in the DA’s office because they had a recent bankruptcy. They were turned down as a security risk because they were be vulnerable to financial pressure/inducements. I suspect it may effect ones eligibility for other positions of trust.