
Bible and Bankruptcy: What Scripture Says
Bible and Bankruptcy – “When they had nothing with which to repay, he freely forgave them” (Luke 7:42).
Bible and Bankruptcy – Many people are unaware that the principles of bankruptcy are deeply rooted in Scripture. The Bible provides a foundation of forgiveness that bankruptcy laws reflect today. From ancient teachings on debt to modern applications, the Bible shows a merciful approach to financial hardships.
God Owns Everything: The Scriptural View of Material Wealth
Bible and Bankruptcy – The Bible’s view on ownership is clear: all material things belong to God. In capitalism, individuals own property; in communism, the state owns property. However, Scripture teaches that we are stewards of God’s resources.
“For every beast of the forest is mine, and the cattle upon a thousand hills. I know all the birds of the mountains; and the wild beasts of the field are mine” (Psalm 50:10-12).
As stewards, we are responsible for managing God’s resources faithfully. This includes handling debt and finances responsibly. “It is required in stewards that a man be found faithful” (1 Corinthians 4:2).
Biblical Teachings on Lending and Interest
Bible and Bankruptcy – In biblical times, lending with interest was discouraged. The Bible emphasized compassion, particularly for those in financial distress.
“If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him” (Exodus 22:25).
Bankruptcy can be seen as an extension of this biblical principle. It offers individuals a fresh start, allowing them to recover from financial misfortune such as health issues, accidents, or job loss.
The Year of Jubilee: Biblical Release from Debt
Bible and Bankruptcy – One of the most striking examples of debt forgiveness in the Bible is the Year of Jubilee. Every 50 years, the Bible mandated a complete reset of debts and land ownership, providing a fresh start for everyone.
“You shall count seven Sabbaths of years, seven times seven years, so that the time of the seven Sabbaths of years shall give you forty-nine years. Then you shall sound the loud trumpet on the tenth day of the seventh month… And you shall consecrate the fiftieth year and proclaim liberty throughout the land to all its inhabitants. It shall be a Jubilee for you” (Leviticus 25:8-10).
During the Year of Jubilee, all debts were forgiven, and property was returned to its original owner. This allowed families to reclaim their livelihoods and start anew. The Year of Jubilee parallels modern bankruptcy, where individuals receive a reset to rebuild their financial lives.
Forgiveness in the Bible and Bankruptcy Laws
Bible and Bankruptcy – In the Gospels, Jesus teaches about forgiveness and mercy. This concept is key to both spiritual and financial restoration.
“And when they had nothing with which to repay, he freely forgave them both” (Luke 7:42).
Modern bankruptcy laws mirror this principle by providing relief to those burdened by debt. Bankruptcy offers a chance for individuals to regain financial stability, similar to the biblical principles of mercy and forgiveness.
The Bible and Bankruptcy In Modern Bankruptcy Law
Bible and Bankruptcy – Our Founding Fathers recognized the importance of debt relief, even placing bankruptcy protections in the U.S. Constitution. Bankruptcy laws are designed not just to help individuals but to benefit society by getting people back on their feet.
Even major corporations and public figures, such as business magnate Donald Trump and President Abraham Lincoln, have used bankruptcy to recover from financial challenges.
Biblical Debt Release Every Seven Years
Bible and Bankruptcy – The Bible also includes a seven-year debt release cycle, emphasizing fairness and mercy.
“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” (Deuteronomy 15:1-2).
Although U.S. bankruptcy law now follows an eight-year cycle, the biblical principle of debt forgiveness every seven years still serves as an inspiration.
Debt as Slavery: The Bible’s View on Debt
Bible and Bankruptcy – The Bible describes debt as a form of bondage, underscoring the importance of financial freedom.
“The borrower is a slave to the lender” (Proverbs 22:7).
In ancient Israel, slaves were freed every seven years, and they were not sent away empty-handed. “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).
Today’s bankruptcy laws reflect this same principle. While you may not receive livestock, bankruptcy laws allow individuals to keep much, if not all, of their property.
Bible and Bankruptcy
– Forgiving Debts as We Are Forgiven
Bible and Bankruptcy – The Bible encourages a spirit of mercy and generosity. “The wicked borrows but does not pay back [with intent], but the righteous is generous and gives” (Psalms 37:21).
As Christians, we are taught to pray, “. . . forgive us our debts as we forgive our debtors” (Matthew 6:12). This idea of forgiveness is at the core of both Scripture and bankruptcy.
Bankruptcy as a Reflection of Christ’s Sacrifice
Bible and Bankruptcy – Bankruptcy is, in many ways, a precursor to Christ’s ultimate act of forgiveness. Just as bankruptcy forgives financial debts too large to repay, Jesus forgives the spiritual debt we could never repay. Through His sacrifice on the cross, we are given a fresh start.
Seek Wisdom in Bankruptcy Decisions
Bible and Bankruptcy – Ultimately, the Bible teaches us to seek God’s wisdom when making decisions about bankruptcy. “If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him” (James 1:5).
“For I know the plans I have for you,” says the Lord. “Plans for good and not for evil. To give you a future and a hope” (Jeremiah 29:11).

