The Moral Implications of Bankruptcy

I read a very good paper addressing this topic recently. Just in legal terms, bankruptcy is a confusing issue. Trying to sort through the Biblical principles ethics can make it more of a connundrum. This paper was very helpful and clear. I learned the differences between Chapter 7 and Chapter 13, which may have huge moral implications- a difference between %0 repayment and up to %100 repayment of debt. I agreed with the author, too, in stating that Scripture has a general aversion to debt, but it is not specifically prohibited.

The conclusion in the paper is that, in the rare circumstance where lendors are not willing to renegotiate and the debtor's debt is more than assets and income, bankruptcy may be the option most glorifying to God. A Chapter 13 can accomplish that, but just the mention of "bankruptcy" can be quite a stigma.

This issue is likely to be more and more popular in our current economic universe. I was encouraged to research this and know what Scripture does say for when the time does come to have an answer.