Friday, January 6, 2012

What does the Bible say about filing bankruptcy?

I am a bankruptcy attorney in Phoenix ($995/Chapter 7) and prospective clients sometimes express to me guilt about filing for bankruptcy. I usually tell them that the government has artificially forced this economic crisis, by requiring banks to offer home loans to people who could not afford them, then bailing out the banks when the homeowners inevitably started foreclosing. Now, the rest of us are stuck in homes we can't get out of, underwater, with no hope in sight of the real estate market improving for 10 years. Meanwhile, we are bailing out the banks and expected to continue throwing money down the drain on our mortgages to the banks? This situation made me so furious I wrote an article about it last summer, "Bailouts for Big Business, Bankruptcies for the Middle Class."

The way our economic system is set up, those who know the ins and outs of the laws are able to legally weasel the best financial situation for themselves. Those who don't often end up in the worst possible situations through no fault of their own. I like to point to Ron Paul as the classic example. Everyone thinks of him as the highest example of a politician who doesn't like wasteful spending, bailouts, and spending beyond our means. However, he will bring home the bacon with earmarks for his Texas district! The point is, no matter how scrupulous you try to be about spending money, if you don't take an opportunity for yourself, someone else is going to take that money instead. Similarly, if you don't file for bankruptcy when you are at the end of the rope financially, others will, making everyone else's bills go up. For example, all the other people filing for bankruptcy result in situations such as where credit card companies must deal tougher with the remaining clients, refusing to budge one inch with you over the debt you owe them. Right now with the economy in the tank, companies going out of business, and both consumers and businesses filing for bankruptcy at epidemic levels, credit card companies and other creditors are ruthless at negotiating with consumers.

Even the Bible recognizes this kind of situation. Life isn't perfect, things happen that we can't foresee, and God understands that. Deuteronomy 15:1-2 states, "At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD's release." It is no coincidence that bankruptcy laws permit you to file bankruptcy around once every seven years. Read more about what the Bible says about filing bankruptcy here.

The Alexander Bankruptcy Law Firm provides low low cost Chapter 7 and 13 personal bankruptcies. $995 Chapter 7 or $2500 Chapter 13 bankruptcies plus court filing fee. Free consultation with a compassionate attorney who will handle your case personally. Call 24/7, available to meet with you around your schedule. 602-910-6812. Conveniently located in Central Phoenix along the Camelback corridor.

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