Would Jesus File Bankruptcy? What the Bible Really Says About Debt, Forgiveness, and Financial Freedom
Let me guess—you’re staring at your credit card bill, wondering if Jesus himself would shake his head at your Amazon purchases. Maybe someone told you that the Bible says debt is a sin and you’re starting to panic.
Well, take a breath. Let’s talk this through like rational humans.
Because here’s the truth:
💥 The Bible doesn’t say debt is a sin.
💥 And believe it or not, there’s actual scriptural support for debt forgiveness—and even bankruptcy.
Let’s dig in.
The Bible Warns About Debt—But It’s Not What You Think
First things first: No, the Bible doesn’t say taking on debt is a moral failure.
What it does say is that debt can put you in a powerless position. Proverbs 22:7 spells it out: “The borrower is slave to the lender.”
And if you’ve ever felt like your paycheck disappears before it even hits your account—yeah, you get it.
Debt makes you dependent. It limits your options. But it’s not a character flaw. It’s math wrapped in emotion.
Here Are Some Key Biblical Reminders:
- Proverbs 22:7 – Debt creates dependence. That’s why financial freedom matters.
- Romans 13:8 – “Owe no one anything, except to love one another.” Translation? Stay out of unnecessary debt so you’re free to love, not stress.
- Deuteronomy 15:6 – God wanted His people to lend, not borrow. Why? Because borrowing usually comes from need, not abundance.
But here’s where things get interesting…
What About Debt Forgiveness and Bankruptcy?
You might be shocked to learn that God built debt forgiveness right into Old Testament law. It was baked into how society functioned.
Deuteronomy 15:1-2 says:
“At the end of every seven years you must cancel debts… Every creditor shall cancel any loan they have made to a fellow Israelite.”
Imagine that—a mandated reset every 7 years.
Not judgment. Not shame. A fresh start.
This wasn’t optional. It was part of God’s system of grace and justice.
Why? Because life happens. Crops fail. Illness strikes. Business deals go sideways.
Sound familiar?
If you’ve ever filed for bankruptcy or even considered it, you might feel like a failure. But what if you’re just doing exactly what the Bible made provision for?
Even in our modern legal system, bankruptcy gives people a second chance. And guess what? Studies show people who file for bankruptcy often do better financially than those who don’t (Source).
So no—you’re not spiritually disqualified because you needed a way out.
Jesus and the “Christian Debt Advice” That Misses the Point
Let’s be real. A lot of Christian financial advice is more about shame than scripture. You’ve probably heard something like:
“God doesn’t want you to file bankruptcy—just buckle down, sell your stuff, and pay it all back.”
That advice sounds noble, but it’s not always biblical.
In Matthew 6:12, Jesus tells us to pray, “Forgive us our debts, as we also have forgiven our debtors.”
That’s not a metaphor. It’s a mindset.
Grace. Compassion. Forgiveness.
Even financial forgiveness.
If you’re drowning in debt, the goal isn’t to white-knuckle your way out of it with shame and hustle. The goal is freedom—and sometimes, that includes a fresh financial start.
Can You Be Debt-Free (and Still Live in the Real World)?
If you’re in a place where you can pay cash for everything, awesome! But for most people, a strict “no debt ever” rule just isn’t practical.
- Buying a house? You’ll likely need a mortgage.
- College? Unless Grandma’s secretly a millionaire, student loans might be involved.
The real question is: Are you using debt as a tool or as a trap?
- Wise debt builds long-term value (think: modest home, education).
- Toxic debt drains your income and peace of mind (hello, 29% credit cards).
How to Use Biblical Wisdom to Pay Off Debt (Without Losing Your Mind)
Let’s say you’re already in debt. Been there, done that. Here’s what to do:
Step-by-step, here’s how to climb out:
- Stop borrowing. Don’t bail water while drilling new holes.
- List all your debts. Name them. Shame them. Face the math.
- Track your spending for 30 days. Not a dream budget. Real numbers.
- Find extra cash. Sell stuff. Side gig. Round up purchases with an app like Acorns.
- Attack one debt at a time. Snowball or avalanche—just move.
- Repeat until you’re free. This is about reclaiming your life, not self-punishment.
FAQ: Real Talk for the Spiritually Stressed
Q: Is all debt sinful?
Nope. But unwise debt can enslave you—and that’s what the Bible warns against.
Q: Is bankruptcy giving up?
Not at all. It can be a biblical reset. If it helps you protect your future, it might be the wisest choice you’ll ever make.
Q: Can God still use me even if I’m in debt?
Absolutely. Your balance sheet doesn’t affect your value—or your calling.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Q: What if I feel ashamed about my financial mistakes?
Guilt is a dead end. Grace is the GPS. Take the lesson, not the shame.
Final Word: Grace Over Guilt, Always
Listen. Debt isn’t a scarlet letter.
You’re not less faithful or less “Christian” because you needed help.
The Bible doesn’t glorify struggle. It glorifies freedom.
So whether you’re paying off your last $500 or considering bankruptcy, remember this: You are not your debt. You are not your past. And you are not alone.
👉 Subscribe to the Get Out of Debt newsletter.
👉 Listen to the Get Out of Debt Guy podcast.
👉 And if you want a real plan (without the shame), talk to Damon Day—the only debt coach I trust.
You’ve got this. Let’s walk it out—together.
