Legalistic theology and bankruptcy

My mother wrote me mentioning Bankruptcy Reform and I thought she was asking for further info on it but realized later she wasn’t, she had another question on it that had to do with religion’s role. still the particulars according to Mediagirl’s blog are here (fair rundown, mom) which I found via Alas, a Blog and there’s a link too to a rant at Dailykos by Maryscott Oconnor.

Maryscott Oconnor notes:

The details of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 — a Draconian piece of shit so OBVIOUSLY crafted as a Republican Paean to MBNA (the LARGEST SINGLE CONTRIBUTOR to the REPUBLICAN PARTY — never, ever forget that) and their co-conspirators, in a giant “Fuck You, Assholes — We Want MORE!” – are horrifying in the extreme.

One of the charms of wealth is that if you are wealthy wealthy wealthy you don’t, of course, have everything taken from you because you put your assets in a trust…the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 provides exemptions for asset protection trusts. Oconnor gives a nice rundown of the amendments (such as one that would rein this in) that were rejected. Such as exempting debtors from “means testing if their financial problems were caused by identity theft” which was a no go, and I would like to hear Rejected: the amendment that would limit the amount of interest charged on any extension of credit to 30 percent.

Rejected: preserving existing bankruptcy protections for individuals whose economic distress is the result of ill or disabled family members and tending for them. Rejected was the amendment providing protection for medical debt homeowners and an amendment exempting debtors from means testing whose financial problems were caused by serious medical problems.

For a good number of people, bankruptcy is due to catastrophic health circumstances. Boom, sickness, bills, they lose their health insurance of course and then everything else.

The set-up is life-time indebtedness not too distant from the old debtor’s prisons. One person commented it was the “The American Family Slave Act of 2005.”

Considering that it’s illness or the loss of a job that usually precipitates financial crisis leading to bankruptcy, then I can see how really putting the screws to them is…uhm, no, I don’t even begin to imagine the “why” except, as Oconnor points out, it’s a matter of Republicans rejecting Democrat amendments just because because because.

America is not a place to get sick. Don’t do it. Even if you have health coverage, the insurance company is going to drop you anyway because, you know, of illness, and then you’re going to lose everything you’ve got because you have no financial protections.

America’s a funny culture. Excusing colonization and ethnocide parents pass on stories to their children of how (fill in the blank natives) used to drop their sick and elderly in the lonely waste and left them to die. They were bad. We are good. Thank (fill in the blank) we came along and saved everyone from themselves.

In the meanwhile, America eats its young, its elderly, its poor, its sick, and its middle class. Yum, yum, good.

Bankruptcy is a word that used to be associated with a moral deficiency and still is, or there’s an ongoing fight to keep it a mark of decrepit values. I imagine a lot of people have fought bankruptcy with moral obligation in mind, even if outrageous interest rates mean they have already paid their debt three and four times in full. If bankruptcy is now more common than divorce (yes) then something is quite wrong already, as I do believe it has been a last resort for the majority (if you’re not Donald Trump and the like for whom it’s just another way of doing business and making a profit). But many bankrupt individuals having already paid their debt in full, plus three times that, isn’t enough when it comes to the personal debtor.

Considering that a fair number of Republicans and Bush supporters were middle class (what’s left of it) and Christian, what are churches telling their flocks about bankruptcy?

Considering the rise in fundamentalism, I imagine the teaching of the Assemblies of God on bankruptcy isn’t too far right of what many Christian churches teach. So, I’ve excerpted a few thoughts from them here on financial responsibility and bankruptcy from the Official Assemblies of God teaching.

The only control one has is keeping expenditures within one’s income—in fact, within 90 percent of income, for God has a claim on the 10 percent tithe (see Concerns at the end of this piece).

Right, mustn’t forget to support the church.

But that is not easy with all the complications and unexpected expenses that come along. Budgeting is a wise practice for making sure that we have a good testimony as Christians.

Ok, moral linkage. Budgeting is Christian. If you are a good Christian then your finances are in order.


“Let no debt remain outstanding” (Rom. 13:8)… failing to pay one’s debts is certainly not a demonstration of love.

Ouch, that’s getting pretty severe. Most people wouldn’t think they had a love relationship going on with their credit company.

When a purchase is made by credit card or by a promise to make specified payments over a period of time, there is no debt as long as the buyer makes regular payments according to the agreement. If, however, a payment is not made at the agreed time, the buyer is in debt and would violate Paul’s admonition to owe nothing, especially love.

One of the amendments rejected by the Bankruptcy bill is increased disclosure of just how pricey it is to only make the minimum required payment on your debt. Lucrative to credit companies. Tons of money to be made in a person only making the minimum required payment. It increases one’s indebtedness.

If one cannot meet the terms of the original agreement, the Christian thing to do would be to contact the creditor explaining the problem and asking for a substitute agreement. If that cannot be arranged, the unpaid obligation makes the buyer a debtor.

In most catechism it is business that’s above reproach.

Buying necessities on credit can actually be an investment. Paying rent for years is like pouring water on the ground. It should only be done until one can qualify for a home purchase.

I guess so the credit companies can scarf it up.

The Bible describes one who does not repay his debts as a wicked person: “The wicked borrow and do not repay” (Psalm 37:21).

There it is, the debtor who does not pay is wicked.

Credit extended for major purchases is usually covered by collateral so that the lender, in case of the buyer’s default, takes back the property leaving no debt.

Not to mention the hefty hunk of change they’ve made off of the interest.

Keeping something that one has not paid for according to agreement would be a violation of Christian integrity and a sin…A faithful man will be richly blessed, but one eager to get rich will not go unpunished” (Prov. 28:20). Our attitude in handling money and possessions is all-important.

There’s the be good, don’t aim too high, and you’re prosper. Riches here are equated with “bad” but I’d wager that there aren’t many rich people in the Assemblies of God who wouldn’t be thought of as anything but “blessed with riches” because of faith, good works, etc.

We live in a society of declining morals and ethics. Bankruptcy and Chapter 11 proceedings are being used by many as a means of avoiding rightful obligations.

Here you go, support for the Bankruptcy Bill through the belief that bankruptcy is for the immoral individual. Nothing about illness and loss of work being the prime cause of financial catastrophe.

Society has made things that used to be considered luxuries into necessities. The family is forced to have two wage earners in order to pay for the things they feel are needed.

What century is this person living in. Guess what, women were wage earners on the farm (they are undoubtedly referring back to an agrarian life style here). Their work waas work, it just happened to be on the homestead. They made goods and sold them to up the income.

But the family and its spiritual growth are far more important than buying bigger and better toys to substitute for the presence of loving parents.

We’re talking bankruptcy here, remember, and the argument falls flat when one again remembers that bankruptcy is most often preceded by illness of wage earners or family members or loss of a job.

A final concern is the attitude of some Christians who feel they can’t afford to tithe even though they would like to. They plan to contribute to the Lord’s work when finances permit. Or they ask where in the New Testament Christians are required to tithe. This Old Testament acknowledgment that everything we have comes from God is nowhere removed in the New Testament. It is assumed to continue for Jesus commended the Pharisees for their tithing, at the same time He shamed them for not obeying the weightier matters of justice, mercy, and faithfulness (Matt. 23:23). We believe that the road to financial solvency is longer without tithing than it is with tithing. God honors those who make His money the first priority in their budgeting and spending.

And finishing it all off, Assemblies of God reminds that being in financial straits doesn’t mean you can take a break tithing ten percent of your income to your church.

Mark Robbins, a Christian C.P.A. writes,

In the last article of Money Sense, it was indicated that voluntary indebtedness could get so out of hand that the thought of declaring bankruptcy could become a matter of consideration for many people—including Christians. According to the August 1999 American Bankruptcy Institute report, there were over 1.4 million bankruptcies filed for the twelve months ending in June 1998 and justunder 1.4 million filed ending in June 1999. A little over 97% of the filings were personal bankruptcy.

Business bankruptcy must be good and acceptable whereas personal bankruptcy means no-accountable person.

This has takenplace in an economy that has the lowest unemployment,interest, and inflation rates in recent history.

Yawn.

What should the Christian’s viewpoint be on this subject? Ecclesiastes 5:5 says, “Better it is that thou shouldest not vow, than that thou shouldest vow and not pay.”
A Christian should not take on any debt that he or she is not prepared to repay, cannot repay, or does not intend to repay. A believer’s word should be as binding as any signed contract. As believers, we are bound to repay whatever it is that we borrow.

And then a lot more, right? They all ignore the real economics of lending.

The circumstance of our indebtedness or the length of time for repayment is irrelevant. Bankruptcy does not negate our biblical responsibility to repay the whole debt…

In other words if you’re sick or had a dramatic unanticipated loss in income (when is it anticipated?) you still have no excuse.

Psalm 37:21 says, “The wicked borroweth and payeth not again:…”

[clear]
Yada, yada.

Mark Robbins, who believeth not in illness, goes on to say that acceptable even essential ways of paying off debt include selling off your assets, liquidating your investments, taking other jobs (individuals in the U.S. work more than any other modern industrialized country) and seek gifts from family to pay off your debts.

Mark Robbins also talks about the must of tithing.

Howard Dayton, CEO of “Crown Financial Ministries” writes that god’s word makes it clear that believers shoud be responsible for their vows and repay what they owe. Every debt. His attitude too is that bankruptcy laws are too lenient and that’s why people increasingly flock to bankruptcy court.

He notes,

Skyrocketing increases in the number of personalbankruptcies seem to support this assumption. Theexecutive director of the American BankruptcyInstitute says the dramatic increase in consumer fil-ings is attributable to three variables:1. Sustained levels of household debt2. Household budgets so overextended that itseems impossible to get out from under debt3. A decrease in bankruptcy’s negative stigmacombined with an abundance of credit.

Again, yada yada. The message–despite illness and income less being the prime reason for bankruptcy–is that the exceptional indebtedness is caused by people eschewing frugality and buying toys.

Dayton, at least, gets quickly to the point. TITHING.

The bad news is that the younger generation,those 35 years old and younger, have more debt, lesssavings and are less generous.Recently I met with the pastor of a large churchwho had conducted a survey of his church’s giving.He found that 58 percent of the church budget wasgiven by those 65 and older. The survey also showedthat it required five younger households to replacethe giving of one older one. He asked me, “What’sgoing to happen to the ministry of this church whenthese loyal, generous die?”The good news is that when the younger genera-tion is trained, the people respond. About 60churches that use the Crown Financial Ministriesprogram surveyed graduates of the Crown program.They discovered that within three years of graduation, the average household reduced its debt by$20,000, increased its saving by about $10,000 andincreased its giving 62.5 percent

Dayton’s job depends upon you being in debt and needing a way out that isn’t bankruptcy. Take that into consideration.

From Timothy Southall’s “The Christian and Bankruptcy”:

Should a Christian declare bankruptcy to erase his debt? First, let’s look at the scriptures and see what God expects from us. The scriptures do not address bankruptcy itself, but there are some scriptures that do apply and will help us make biblical judgments and decisions.

Living on credit and not paying back is a characteristic of the wicked:

The wicked borrow and do not repay, but the righteous give generously. –Psalm 37:21 (NIV)

All monetary debt must be repaid:

Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law. –Romans 13:8 (NIV)

Is it biblical for a Christian in debt to get a “free ride” to his problems by signing up for bankruptcy? Based on the above verses, the answer is easy–”No.”

Progressives wonder why in the hell the middle and lower middle class vote resoundingly for people who institute laws that are crippling them.

Church?

And finally, before I start throwing up, this from Ken Walker at thegoodsteward.com on tithing being rewarded in unexpected ways.

They have suffered such financial setbacks as bankruptcy, car repossession, staggering credit card bills and scratching for cash to buy their next meal.

However, since they started tithing, half a dozen Christians told Baptist Press they have more than enough money to provide for their needs. And, they feel they are making positive contributions to God’s work in the world.

“It’s not what the prosperity teachers teach,” said Raquel Perez of Elizabeth, N.J. “Give because it’s an indicator of your heart toward the Lord. What you love you put your money into, whether it’s your house, car, or whatever. Give because He is worthy. We’re not to serve God for what we can get out of Him.”

Kevin Maude of Woodstock, Ga., who started tithing immediately after his conversion in 1999 despite $15,000 in debt, agreed.

“The blessings aren’t all monetary,” Maude said. “I’m talking about friends, family and the way your kids are growing up. Just to know that if you leave it in God’s hands and let it work His way, it will – that’s what we’ve learned. That’s the key.”

Andrew Stull, a 25-year-old environmental health specialist from Lawrence, Kan., felt led to start tithing two years ago when he heard the late financial counselor Larry Burkett mention Luke 16:10: “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.”

Often broke in college, after finding full time employment Stull wondered why he didn’t have more money left at the end of the month. Then he started tithing and saw a huge difference.

“It’s strange – after a month or two I didn’t notice it because I always had plenty of money to go around,” said Stull, a member of First Southern Baptist Church in Lawrence. “And I was able to build my savings back up.”

The end of the article is on a family who was near bankruptcy and decided not to declare. They started tithing and low and behold money started coming in from here and there to meet all their needs.

Anyway, progressives, if one is looking for reasons why middle and lower middle class Christians voted for Bush and cronies despite how he’s raping them, in the financial department at least the church is telling them business is good, the personal debtor is bad and responsible for his or her debt regardless, there being a moral linkage between the individual and their debt, which doesn’t leave much room for compassion toward the debtor. Over and over one hears that, regardless one’s circumstances, one is obligated to pay one’s debt. What’s more, tithing is your get out of debt card as god will reward his faithful so they have everything to meet their needs. One website even said that there’s no cause to complain if you lose everything you have as a debtor, in lieu of going into bankruptcy (at least before this Bill that removes any protections) because as a Christian you will be taken in by another Christian household, and you’ll have a roof over your head and meals. No tears allowed.

My limited searches (a few hours) showed a few stories on the web (scattered on Christian forums mainly) that point out tithing is legalistic and not to feel bad about bankruptcy, that it doesn’t make one less a Christian. But the predominate message is one steals if one goes bankrupt. Why is the church so afraid of personal bankruptcy? I wonder if it has to do with psychology of power over and power under. Does dissociating stigma from declaring bankruptcy increase the threat that individuals might rethink moral mandates to pay up regardless, and be more willing to give up tithing if unable to afford it. A number of people tithe based on gross income. A number of people are encouraged by their churches to immerse themselves in “prosperity thinking”, not permit discouraging thoughts or fears, and regardless of their need even increase their giving to the church, called a “sacrificial offering”, so that god will then have an open avenue to return financial blessings to them, the message being that if you are having a rough time it’s because the lord can’t help you as you’re not giving enough.

I’m not going to go into tithing itself. A person can give whatever they want to the church.

But I do wonder if there’s likely an acceptance of stricter bankruptcy laws in America at large because of church instruction. Which reaches outside the church and over everyone’s heads because of this belief of there being no moral bankruptcy, whatever one’s circumstances. Financial institutions and business reap big. The little guy crumbles. Doesn’t matter. One could put all the corporate facts before people who carry these beliefs and it wouldn’t matter to them.

Business is good and right. But the individual–if they’re in bad straits it’s their fault, god has turned his back on them due to their wickedness (even though they’re still paying and thus still “good” according to their bible law). The way to buck up those morals is to make bankruptcy harder and to afford no charity.

Seems there are a lot of middle and lower middle class people who have perhaps lost enough to be frightened, but haven’t lost all yet. Kind of like being under the delusion you have absolute control over your life, and thus it’s your good decisions and right living that have resulted in you having a roof over your head and health. If you have absolute control over your life and have done fairly well then it’s easy to be in control of god and reap divinity’s blessings. You are proof that it works as you are surrounded by them. If you’ve less than you used to have, or have troubles, or friends and relatives have troubles, as long as your head is above water then you’re still somewhat in control and thus somewhat in control of god and his blessings (retroactively).

All down the same lane as might equals right.


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