A struggling business owner once called me to ask if bankruptcy is a sin. He had been talking with a bankruptcy attorney due to his company’s debt load, and his biggest concern was his desire to please God.
Bankruptcy is a legal maneuver that sometimes cannot be prevented, especially if multiple creditors force someone into involuntary bankruptcy. Therefore, bankruptcy is not a sin, but how you choose to repay your debts can be. The goal is to pay back all you owe as fast as possible.
Romans 13:8 teaches, “Let nodebtremain outstanding, except the continuingdebtto love one another, for whoever loves others has fulfilled the law.”
Try everything possible to avoid bankruptcy, but remember God can even use bankruptcy to love your creditors and help you repay debts faster.