Until recently, filing for bankruptcy carried the stigma of failing and being dishonest. Many people have avoided filing for bankruptcy, even to their own death, because of the stigma. No one really wants to file for bankruptcy, at least those of us who are honest, but sometimes circumstances make the process unavoidable. It’s interesting to see how this stigma of questioning someone’s honesty and labeling them a failure came about. While no one will really come out and say that this negative label started, I suspect it was perpetrated by the credit industry. They know that once a person hires a bankruptcy attorney, they probably won’t get anything back. Initially, a debt collection company will call to make payment arrangements and try to befriend the individual in financial trouble. Most people don’t realize it, but they will feel guilty if they don’t pay their new friend. When a person reaches the end of their rope and has nothing to give them, the gloves are removed and character assassination begins. Debt collectors are paid based on what they collect, so they have no problem being the ones trying to destroy a person’s character with threats and beatings.

Interesting facts are the most common reasons someone files for bankruptcy are unemployment, a medical illness that causes job loss with large medical bills, and family issues like divorce. So when a debt collector calls a person and accuses them of being dishonest for not paying their debts, it seems to me that all these reasons are out of their control and there is nothing wrong with filing bankruptcy. People need to understand the source of the information that makes them feel bad about themselves. A quick way to remove blame is to speak with a bankruptcy attorney and they will be able to clarify the person’s situation. For someone who needs to feel better about themselves, all you need to do is look at the recent study that concluded that the average American family is only three weeks away from having to file for bankruptcy. This conclusion was based on the amount of debt the average American household carries and compares it to their savings and income. In most households, debt is mounting, a savings account is non-existent, and income is declining.

For those who still feel the guilt and shame of filing for bankruptcy, all they need to do is open the Bible and use it as a moral compass. It is true that the Bible makes it clear that we are expected to pay only debts. I don’t think anyone disputes this point, even those who file for bankruptcy. However, the Bible does speak of the balance between the moral and legal obligation to pay those debts and considering the need for compassion and the requirement that those debts be paid off at regular intervals. This comes from Deuteronomy 15 in the Old Testament of the Bible and is the basis for how Congress created the Bankruptcy Code. The cancellation of debts every seven years was clearly spoken of in Scripture. Deuteronomy 15: 1-2 says: “At the end of every seven years you will grant a release. And this is the form of release: each creditor will release what he has lent to his neighbor, his brother, because the Lord’s release has been proclaimed “.

So the next time a debt collector calls and starts berating the person, you should open your Bible and let the collector know the truth about filing bankruptcy and how it should be treated morally and legally.