So with that said, I thought I would give you 4 alternatives to bankruptcy that you may not have considered.

These are real christian debt solutions that can save you the financial devastation that going bankrupt can cause.

#1 Stay away from debt. I know it seems simple, but it needs to be said. In today’s financial climate, staying away from debt is the single best option to help you avoid bankruptcy.

Unfortunately, I am guessing that since you are are here, it is too late for that, right? No problem, here are 3 other solutions to your debt problems.

#2 Christian Credit Counseling. Sometimes all you need is a push in the right direction. In most cases, a little help from a professional counselor can help you set up a budget, get on a reasonable repayment plan and ultimately get debt free. With the form at the right, you can get started with a no obligation free counseling session.

#3 Christian Debt Consolidation. With a good consolidation plan, you can shrink your monthly payment to a manageable amount that can be easily payed down over time. Here the company you choose to consolidate with will contact your creditors, negotiate lower payments and interest rates and handle all of your payments. A pretty sweet deal as long as you understand this one debt consolidation warning.

#4 Christian Debt Settlement. With settlement you are essentially negotiating with your creditors to take a one time reduced payment to clear your debt away. If you have a reserve of cash, this may be a valid option for you. But if you are like me, when I was in over my head in debt, a large reserve of cash wasn’t an option.

So if you are a Christian considering bankruptcy, please consider these 4 options first. They could save you years of financial regret.

Good luck and let me know what you decide!

Chad

There are Christians who would disagree that filing bankruptcy is an acceptable option by saying that “only the wicked do not repay what they borrow”. But their rendering of this Psalm is too hard.

In fact, if you choose to file bankruptcy you have a good Biblical case to move forward without the guilt that an overly oppressive view can cause. Which long term can harm your relationship with God.

But before you run off to decide whether you want to chapter 7 or 13 it, let’s look past the religious jargon to decide if declaring bankruptcy is the right choice for you. And who knows, you might be surprised.

Now that you know that I think Christian bankruptcy is okay, let me come clean and tell you I have never filed personal bankruptcy, so everything you are about to read is from the perspective of someone who fell into a lot of debt, but fought and clawed my way out. So there, that is my disclaimer.

First, going bankrupt is almost never a good option. It is actually pretty expensive to file bankruptcy (starting around $1000 with filing and attorney fees). It dramatically affects your credit almost immediately. And you will be wrapped in various legal issues that require a qualified bankruptcy attorney to navigate through.

And even if you feel like the late fees, credit card balances and over the limit fines are out of control to the point that you feel hopeless, there are times when should you avoid bankruptcy at all costs.

• When you think it sounds like an “easy way to get out of debt quick”.
• You think you can “just file bankruptcy” and the slate gets wiped clean and all of your problems disappear. Because they won’t!
• If you can, with a reasonable and sustained effort get out of debt. And by reasonable and sustained I mean 4-5 years of selling off ALL of the “toys”, sticking to a budget and even working an extra job to pay down the money you have borrowed.

With that said, here is when you should consider filing bankruptcy as a Christian.

• You have developed a budget and in doing so realized that you could not possible pay off your current debt obligation in a reasonable time (6+ years).
• You have found a local bankruptcy lawyer who can help you understand the legal ramification of what you are about to do.
• You understand the options of Chapter 7 (total bankruptcy) and Chapter 13 (a repayment plan).
• You have sought reliable Christian Credit Counseling and Debt negotiation help, but it hasn’t helped.
• And lastly, but really firstly, you have prayed and asked God to give you wisdom, peace and hope for the situation.

So while Christian bankruptcy is never a great choice, if you have corrected the source of the problem that got you into this mess and can honestly say to yourself and God that you have tried the alternatives to bankruptcy and have still not found the debt relief you need, then bankruptcy might be the ‘light at the end of the tunnel‘ that will finally relieve you from the hopelessness that threatens your happiness.