Is It Wrong For A Christian To File Bankruptcy? No, Says A Christian Bankruptcy Lawyer. Here Is What Scripture Says.
by John G. Merna, Esq.
Quick Answer
Yes — a Christian can file bankruptcy, and Scripture supports it. The Bible never calls bankruptcy a sin. It establishes a regular release of debts (Deuteronomy 15:1–2) and warns that “the borrower is slave to the lender” (Proverbs 22:7). Modern bankruptcy law mirrors that biblical “year of release,” offering a lawful, faith-consistent fresh start. Merna Law’s Christian bankruptcy lawyers serve families across Virginia — from Hampton Roads to Richmond — with free, confidential consultations, affordable rates, and payment plans.
FAITH & A FRESH START
Speak With a Christian Bankruptcy Lawyer
Free, confidential consultation. Affordable rates and payment plans for individuals and families across Virginia.
Most Christians do not rush haphazardly to the decision to explore bankruptcy. They arrive at this decision after years of paying debt. They pay regardless of how fair or just the contract for the debt was when they entered into it. They probably spend an equal amount of time praying about their financial situation. But should their religious faith play a part in such a worldly decision. A Christian bankruptcy lawyer would say “No”.
After years of assisting Christian clients to get their life and happiness back, I learned a little about the common questions and struggle Christians go through when considering bankruptcy.
GUILT IS NORMAL:
Most Christian struggle and pray for guidance from God out of a fear of failure or a belief they are doing something “wrong”. They fear they have failed God by being a poor steward of their financial situation and spending. They experience the guilt of possibly wronging their fellow man, namely the creditors, by eliminating the debt in bankruptcy. This misplaced guilt is due to a similar mistaken belief that the Bible condemns bankruptcy according to Christian bankruptcy lawyers.
GOD IS FORGIVENESS:
As a country founded on Christian principles, our Founding Fathers recognized the importance of debt forgiveness. In a country whose overarching principle they proposed was “freedom”, indebted servitude was inconsistent. The idea on debt servitude or slavery, which existed for centuries, was not consistent with their Christian understanding or the principles that were being embraced in our young country. It is not surprising they incorporated similar Biblical principles in our bankruptcy laws.
Bankruptcy law is the embodiment of “forgiveness” of debt. This forgiveness mirrors Biblical references. Under current bankruptcy law, a debtor can receive a release from debt through a Chapter 7 bankruptcy every eight (8) years. Under Biblical law, Christians are directed to release those they hold to a debt at the end of seven (7) years. Prior to 2005, bankruptcy law allowed the forgiveness every six (6) years. So bankruptcy law has generally paralleled the timeline for debt forgiveness in the Bible. Remember God forgives but it is only when we accept his forgiveness and allow ourselves to be forgiven.
“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 broth er, because it is called the LORD’s release.” Deuteronomy 15:1-2
FILING BANKRUPTCY IS NOT A SIN:
The feeling of guilt that many Christians have when filing bankruptcy is often based on the misconception that seeking relief in bankruptcy is a sin. We have discussed that the idea of debt forgiveness is rooted in the Bible. Most Christians do not seek our counsel regarding bankruptcy law until after much time praying for wisdom and direction from God.
DEBT AS BIBLICAL SLAVERY:
The Bible refers to the lender borrowers relationship as a form of bondage: “…the borrower is a slave to the lender” (Proverbs 22:7). With the release from debt, the bible says:
“…in the seventh year you shall let [your Hebrew slave] go free from you. And when you send him away free from you, you shall not let him go away empty-handed; but you shall supply him liberally from your flock…” (Deuteronomy 15:12-14).
Similarly, bankruptcy law like the Biblical provision allows the debtor to keep certain property based on either state or federal law. The acknowledgement in both the Bible and bankruptcy law is that the released debt need some basic items/property to survive and get a fresh start. Your Christian bankruptcy lawyer will be able to ensure that the property you need, in most cases all of your property, will be protected to allow you to get a fresh start.
TWO FRESH STARTS ARE NEEDED:
Jesus taught that sin was a type of spiritual debt owed to God. He taught us that God “forgive us our debts [sins] as we forgive our debtors [those who sin against us]” (Matthew 6:12, Luke 11:4).
Many Christians come to our office after misfortunes that are beyond their control. However, if you have mismanaged your finances, it is your responsibility to confess your failings to Good and seek a fresh start in His forgiveness. Bankruptcy law provides you a secular “fresh start” from your debt. Jesus is mercy and love and bankruptcy law if based on these divine principles.
Jesus wants you to experience his forgiveness and have a fresh start through the forgiveness of your debt.
Honoring Your Creditors While Accepting God’s Release
Many faithful clients tell us they want to repay everything they owe. Scripture honors that desire.
“The wicked borrows but does not pay back, but the righteous is generous and gives” (Psalm 37:21), and “Let no debt remain outstanding, except the continuing debt to love one another” (Romans 13:8). Bankruptcy is not a way to escape responsibility — it is a lawful structure for meeting it honestly. A Chapter 13 plan lets you repay what you genuinely can over three to five years, while a Chapter 7 provides release when repayment is no longer possible. Either way the goal is the one Scripture describes: to be freed from the bondage of unpayable debt so you can give generously again.
God’s Own Pattern of Debt Forgiveness
Long before modern courts, God built debt forgiveness into the rhythm of His people’s life. Every seven years brought a release of debts (Deuteronomy 15:1–2), and every fiftieth year the Year of Jubilee proclaimed “liberty throughout the land” (Leviticus 25:10). These were not rewards for failure; they were acts of mercy that kept families from permanent ruin. Bankruptcy law carries that mercy forward — a Chapter 7 discharge is generally available about every eight years, closely echoing the biblical cycle of release.
Grace for the Soul and the Household
Jesus described sin as a debt we cannot pay, and He offers to forgive it freely — “forgive us our debts, as we forgive our debtors” (Matthew 6:12). The fresh start He gives the soul has an earthly companion in the fresh start the law gives the household. Confess any mismanagement to God, receive His grace, and then let a Christian bankruptcy lawyer help you receive the lawful relief He has made available. Philippians 4:19 promises that “God will supply every need of yours” — sometimes through the very laws written to protect the burdened.
Christian Bankruptcy: Common Questions
Is it a sin to file bankruptcy?
No. The Bible never calls bankruptcy a sin. It establishes the release of debts (Deuteronomy 15) and warns that “the borrower is slave to the lender” (Proverbs 22:7). Seeking lawful relief is consistent with Scripture, not contrary to it.
What does the Bible say about bankruptcy?
The Bible doesn’t use the word, but it teaches debt forgiveness, warns against the bondage of debt, and even commands creditors to grant a release every seven years (Deuteronomy 15:1–2). Modern bankruptcy law reflects those same principles.
Can a Christian file Chapter 7 or Chapter 13?
Yes. Chapter 7 discharges qualifying debt, while Chapter 13 lets you repay what you can over three to five years. Both honor the biblical balance of responsibility and mercy.
Will bankruptcy hurt my standing in my church or my witness?
Bankruptcy is a private legal process. Many faithful Christians have used it to escape the bondage of debt and return to giving generously. Your case is handled confidentially.
Does Merna Law offer payment plans for Christian clients?
Yes. We offer free consultations, affordable rates, and payment plans for individuals and families throughout Virginia.
Do you serve Christian clients in my Virginia city?
Yes. We serve clients across Hampton Roads, the Peninsula, Greater Richmond, and the Eastern Shore, with offices in Virginia Beach, Newport News, and Richmond.
To meet with a Christian bankruptcy lawyer click the link below:
Contact A Christian Bankruptcy Attorney Today!
We have Christian bankruptcy lawyers that service our Christian clients in the following cities:
Virginia Beach, Chesapeake, Portsmouth, Norfolk, Newport News, Suffolk, Hampton, Yorktown, Gloucester, Williamsburg, Hayes, Franklin, Isle of Wight, Carrollton, Richmond, Henrico, Chesterfield, Dinwiddie, Petersburg, Fredericksburg, Mecklenburg, Powhatan, Goochland, Amelia, Hayes, Accomack, Cape Charles, Hopewell, Colonial Heights, Hanover, Midlothian, Mechanicsville, Chester, Midlothian, Emporia, South Boston, etc..
Christian Bankruptcy Lawyers Across Virginia
We proudly represent Christian individuals and families throughout the Commonwealth — Hampton Roads, the Peninsula, Greater Richmond, and the Eastern Shore.
Also serving Chesapeake, Norfolk, Portsmouth, Suffolk, Yorktown, Williamsburg, Gloucester, Chesterfield, Henrico, Petersburg, Fredericksburg, Hopewell, Colonial Heights, Hanover, Mechanicsville, and surrounding communities. Learn more about Chapter 7 and Chapter 13 bankruptcy.
From Our Faith & Finances Blog
Biblical perspective and practical answers for Christian families considering bankruptcy.