JOSEPH W. TKACH
PASTOR GENERAL

January 1988

Dear Friend:

Thank you for your question concerning bankruptcy.

God's laws regarding debtors and creditors are found in Leviticus 25 and Deuteronomy 15. God's Word shows that if a man becomes poor or unable to cope with his financial obligations, others were to help him get back on his feet (Lev. 25:35-38). They were to lend him "sufficient for his need" (Deut. 15:8). It is good to note that one's need may differ substantially from his wants. If a man were unable to pay off his debts before the seventh year RELEASE came, his creditors were to nullify the debt at that time; that is, they were to cancel it completely. Debts and financial obligations were released every seventh year (Deut. 15:1-3). This was God's method of dealing with bankruptcy in His nation.

A person should pay his debts if at all possible. Often an extension of time can be arranged if one is acting in good faith. Creditors will usually be understanding if they are properly approached. However, there are cases in which people, due to unforeseen circumstances, have gotten themselves into such overwhelming debt that their bills greatly exceed their ability to pay. In such cases, it might be wise to declare bankruptcy. If a person finds it necessary to do so, he could consult an attorney who is familiar with bankruptcy procedure. Such an attorney would be able to help work out the best arrangements for proper settlement for all concerned.

Declaring bankruptcy should not be taken lightly. It is a very serious matter. One should always do his best to pay off his debts rather than declare bankruptcy. He should take that step only if circumstances necessitate such action.

You may wish to request our three booklets which explain the seven laws of success, God's revelation about financial laws, and how to get out from under debt. Their titles are: THE SEVEN LAWS OF SUCCESS, ENDING YOUR FINANCIAL WORRIES, and MANAGING YOUR PERSONAL FINANCES. There is no charge or obligation, of course.

If a person faithfully applies the principles outlined in this literature, he need not fear falling into a bankrupt condition. Even though a person may seem hopelessly bogged down in debt today, he can become prosperous in the future. If an individual takes God as his partner and really yields to and obeys Him, God will see that he is blessed accordingly (Deut. 8:18). God has not promised that His children will not have problems and trials -- but He has promised to supply all their needs if they seek first His Kingdom and His righteousness (Matt. 6:33).

Whenever we may assist you further with your study of the Bible or in Christian living, we hope you will let us know. It is our pleasure to serve you.

PERSONAL CORRESPONDENCE DEPARTMENT