When is bankruptcy the right thing to do?
The core message of the gospel of Jesus Christ is redemption.
In Old Testament times, The Lord provided for individuals to be forgiven of their debt every seven years. Our Founding Fathers felt that the right to file A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code). Click for more: Bankruptcy Introduction Video was so important that they included it in our Constitution. This is no surprise because our whole Western Culture is founded on our Judeo-Christian heritage, including this gift of temporal grace.
Of course, we should all strive to pay our debts. (Leviticus 25:39; Psalms 37:21). Anyone who intentionally borrows money without the intent to repay violates the eighth commandment to not steal. (Exodus 20:15). However, God knows that humans often face temporary misfortune, so he structured his laws accordingly. He often uses natural events and phenomena as types for eternal principles. So, experiencing temporal grace through the forgiveness of financial debt points us to seeking spiritual grace through the forgiveness of our sins.
Forgiveness and Debt
Accordingly, during Old Testament times, God established regular periods when all temporal debts were forgiven. These times were called the sabbatical and Jubilee years. Every seventh year was deemed a sabbath or sabbatical year when all debts of every kind were forgiven and slaves were freed to return to their families. (Deuteronomy 15:1-2, 12-13). Notice the tie between the temporal and the spiritual? To underscore the eternal nature of this principle, after a sabbath of sabbatical years (7 X 7years = 49years) the next year was designated a Jubilee year beginning on the Day of Atonement, when again all debts were forgiven. (Leviticus 25:8-33; 27: 17-24; Ezekiel 46:17). The practice of the sabbatical year and the forgiveness of debt was reemphasized after the Jews returned from Babylon, demonstrating the importance of this principle. (Nehemiah 10:31).
Moses declared that even when the sabbatical year approached, they should still generously loan money to the poor even though it would most likely be forgiven. (Deuteronomy 15:7-10). This demonstrates that, to God, some principles are of higher importance than the repayment of debt, such as teaching compassion and preserving the family unit.
Compassion for those in need was a major theme of Jesus’s teachings. He taught that we should forgive in order to be forgiven (Luke 6:37; lend to those in need even when there is little hope of repayment (Matthew 5:42; Luke 6:34-35); God lets the rain fall on the just and the unjust (Mark 10:25); and he drove the greedy money changers out of the temple (Matthew 21;:13; Mark 11:17; Luke 19:46; and John 2:14-17). God knew that all humans will suffer misfortune, set-backs and challenges in mortality, so he wanted to help us escape these dire circumstances and get a The characterization of a debtor’s status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.). But, more importantly, he wanted to use these experiences as tools to teach us even more important eternal truths. Again, God teaches us compassion and mercy in temporal affairs in order to help direct our minds to see the more important principle of God’s love, as expressed through his grace.
The Right to Declare Bankruptcy
This concept of the balance between justice and mercy and the overarching importance of God’s love, became the foundation of our Western Culture. It is no wonder then, that the founding fathers included the right to declare bankruptcy in the U.S. Constitution. It is interesting that our bankruptcy laws continue to respect the concept of the sabbatical year and allow individuals to file bankruptcy every seven years.
It is a privilege to help people use the tool of bankruptcy that God and the law provide to get a fresh start and move forward with their lives. Let us help you get a fresh start.
Our experienced and caring bankruptcy lawyers not only help individuals and business, but other bankruptcy lawyers refer their more difficult cases to us. You will deal directly with an attorney and not just a paralegal or processing clerk like you will with many other firms. We have experience in helping clients with The chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.) Click for more: Chapter 7 Bankruptcy liquidations, The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) Click for more: Chapter 13 Bankruptcy individual reorganizations, The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) Click for more: Chapter 11 Bankruptcy business reorganizations, and the new Subchapter V allows small businesses and their owners to spread the repayment of some or all of their debt over 3 to 5 years, similar to a Chapter 13 reorganization for individuals. The excess debt that cannot be repaid by the plan payments is discharged at the end of the repayment period. Click for more: New Relief for Small Business - Subchapter V small business reorganization bankruptcies.
Grant Hallstrom formed this firm over 20 years ago and it has grown to become a respected full-service civil law firm. Mr. Hallstrom is the author of the book, Emotional Black Holes, and is the founder of the website, HistoryofChristianTheology.com . He sincerely believes that it is a privilege to help people use the tool of bankruptcy that God and the law provide to help them move forward with their lives.
You really can get a fresh start.
Call (949) 450-8500 today for more information.
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