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Bankruptcy and Lending, the key to having no poor among us

Posted: January 21st, 2013, 3:39 pm
by creator
This is something I was writing about 3 years ago... thought I'd share:

Bankruptcy tends to have a bad name, and for a good reason. We should hope that no one has to go through it. Also, we should avoid debt. My perspective on bankruptcy has changed since reading what the Bible has to say about it, specifically in Deuteronomy 15: http://scriptures.lds.org/en/deut/15" onclick="window.open(this.href);return false;

"At the end of every seven years thou shalt make a release. And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the Lord’s release.

"If there be among you a poor man of one of thy brethren within any of thy gates in thy land which the Lord thy God giveth thee, thou shalt not harden thine heart, nor shut thine hand from thy poor dbrother: But thou shalt open thine hand wide unto him, and shalt surely lend him sufficient for his need, in that which he wanteth. Beware that there be not a thought in thy wicked heart, saying, The seventh year, the year of release, is at hand; and thine eye be evil against thy poor brother, and thou givest him nought; and he cry unto the Lord against thee, and it be sin unto thee.

"For the poor shall never cease out of the land: therefore I command thee, saying, Thou shalt open thine hand wide unto thy brother, to thy poor, and to thy needy, in thy land."

Also, borrowing from an article on this subject... http://www.christian-attorney.net/bible_bankruptcy.html" onclick="window.open(this.href);return false;

"economically, the law of justice states that if you agree to borrow money and repay the debt, you must pay back such debt. The law of mercy, on the other hand, states that if you cannot pay the debt back, you may, through bankruptcy, obtain forgiveness for your obligation."

"As with any act of mercy, someone must bear the cost or the burden, just as Jesus did in dying for our sins. With bankruptcy, the creditor and ultimately the consumers must, in mercy, bear the burden of the unpaid debt, but God said He will bless us for such acts of forgiveness and mercy (Deuteronomy 15:5,10,18)."

"Jesus, in two (2) parables, used the illustration of forgiveness of a financial debt to teach about God's forgiveness and the requirement that mankind forgive (see Matthew 18:21-35 and Luke 7:36-50). "And when they had nothing with which to repay, he freely forgave them both" (Luke 7:42). On a spiritual level, by the grace and mercy of God, Jesus gave us a "fresh start" by canceling all our “sin” debts through His suffering and death on the cross. On an economic level, our nation will graciously help overburdened debtors, if necessary, by giving them a fresh start economically."

The Lord has commanded that those who have enough to spare should not only lend money to the poor, but also requires that the poor who cannot repay their debts are forgiven. This gives the poor a chance to get out of their situation and create something better for themselves.

The forgiving of the debts of the poor is what creates a society where there are no poor among us.

Re: Bankruptcy and Lending, the key to having no poor among

Posted: January 21st, 2013, 3:45 pm
by Seek the Truth
Whenever I see this topic discussed I haven't seen anyone follow through, ie if you lived in debt jubilee societies overall lending would drop dramatically, since lenders would not tend to lend to anyone who was going to get their debt forgiven.

There are pluses and minuses to that, but I haven't made up my mind in modern economies.

Re: Bankruptcy and Lending, the key to having no poor among

Posted: January 21st, 2013, 3:46 pm
by jbalm
For that to work, lending money could not be ones principal occupation.

Not saying that would necessarily be bad. Just sayin'.

Re: Bankruptcy and Lending, the key to having no poor among

Posted: January 21st, 2013, 3:59 pm
by gr8ideas
This works!! I did it in my business for years and it relieved me of bad feelings toward clients who for whatever reason could not pay their bills. Trust in the Lord!! :ymhug:

Re: Bankruptcy and Lending, the key to having no poor among

Posted: January 22nd, 2013, 8:54 am
by mes5464
gr8ideas wrote:This works!! I did it in my business for years and it relieved me of bad feelings toward clients who for whatever reason could not pay their bills. Trust in the Lord!! :ymhug:
+1

Re: Bankruptcy and Lending, the key to having no poor among

Posted: January 22nd, 2013, 10:03 am
by gclayjr
I agree with "seek the Truth". Everybody s looking for an opportunity to get their 30 year mortgage forgiven. Especially if they get the 30 year mortgage 1 year before Jubilee.

Living the law of Jubilee works in a society that "shuns debt" and where the residual of debt left over in the year of Jubilee is the minor residual of those who struggled, but were unable to pay their debt. Then it is nice to get a clean slate so that this slavery is not perpetuated for ever.... Like we intentionaly do today

Regards,

George Clay

Re: Bankruptcy and Lending, the key to having no poor among

Posted: January 22nd, 2013, 10:11 am
by tmac
Interesting thoughts Brian.

Just a few things to consider. Debts secured by collateral are not forgiven in bankruptcy. If secured debts are not restructured, the collateral is taken to satisfy the debt. That is why bankruptcy doesn't really apply to 30 year mortgages.

So really, what we're talking about here is unsecured lending, and I think the principles espoused may have merit.