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Should a Christian File Bankrupt?

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Submitted By Greensboro
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Carl has gotten himself in an awful dilemma. If he chooses to file bankruptcy he needs to seek good Christian council. Carl has the option to file Chapter 7 bankruptcy or Chapter 11 bankruptcy. “In a Chapter 7 bankruptcy, the trustee liquidates the estate and distributes the proceeds, first to secured creditors and then pro rata within each level” (Bagley& Savage, 2010 p. 967). This will allow Carl discharge of his debts. “Chapter 11 bankruptcy rehabilitates a troubled debtor and maximizes the return to creditors. It can reorganize the debtor with a new capital structure so that it can emerge from bankruptcy as a viable concern” (Bagley& Savage, 2010 p. 962). This can be expensive and time consuming for Carl. However, a good Christian council can help him to make the right decision according to his circumstance.
However, from a Christian perspective we all make mistakes and we are all imperfect. Consequently, if God were to give us what we deserved, we all would be in the lake of fire. Since Carl is my friend I would not judge him or look down on him in any kind of way. “Judge not, and ye shall not be judged: condemn not, and ye shall not be condemned: forgive, and ye shall be forgiven” (Luke 6:36, King James Version). At this point Carl can really use a friend that he can rely on. First of all, I would tell him to pray about the situation before he makes a drastic decision. I would ask Carl if he would mind if we were to hold hands and pray immediately about his situation. Praying immediately allows us to touch and agree and bring the situation before God to seek His guidance. Secondly, I would have a heart to heart conversation with Carl about trying to set up a budget. Trying to live above his means is what caused him to get in his present situation. Carl needs help immediately because he is probably feeling like the weight of the world is on his shoulders.

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