The Detroit News ran a great article, The Tithe That Binds, by Brian O'Connor on September 23 that highlights what appears to be a monumental financial dilemma for some Christians.
The dilemma?
A major oversight in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which went into effect last October, does not make any provision for people to tithe or make charitable contributions under a Chapter 7 bankruptcy or Chapter 13 repayment plan.
In other words, you must pay your creditors first and God second, if there's anything leftover. That's a problem because most Christians understand that tithing represents what we pay to God first. As one pastor put it, “Tithers do not see it as discretionary. They see it as something their faith calls for.”
One Woman's Plight
O'Conner's story focuses on the plight of a local woman who has faithfully tithed 10% of her gross income for the last 25 years, plus she gives an extra 3% toward missions. A few years ago she incurred some debts to help a family member who has now passed away — leaving her with all the bills which she can't afford to repay. (A dumb move to begin with, however admirable, but that's a topic for another day.) So this nice lady is contemplating bankruptcy but she doesn't want to give up her tithing.
Her proposal: Pay $100/month to her creditors for 5 years to cover a small portion of her outstanding debts. The rest is presumably forgiven. In the meantime, she can tithe $300/month to her church over that same 5 years. God gets His portion while the creditors get the shaft. (Gee, what a great witness to unbelievers!) But only if the court will let her.
This story got me to thinking about the right thing to do in this woman's situation.
Is her proposal really fair? Does this glorify God and bring honor to His name? Is this the Christian thing to do? What does the Bible say about it?
No Dilemma Here
After looking into it, I realized there is no dilemma. The correct thing for this woman to do, indeed for any Christian to do, is to tithe and fully repay all creditors. No matter how long it takes. No matter how much it hurts.
Psalm 37:21 states,
“The wicked borrows and does not pay back, but the righteous is gracious and gives.”
You cannot cloak yourself in the righteousness of tithing while simultaneously stiffing your creditors. God's word says that not only are the righteous gracious in their giving, but they are also faithful to repay whatever they borrow.
Failure to do either one is wickedness.
The woman in this story should be just as concerned about repaying her creditors as she is about giving to God. They are equal tasks.
Eventually Congress will probably fix this oversight in the bankruptcy law so that tithing and charitable giving are allowed. That will remove the legal dilemma but not the moral one.
The Bible is clear. A Christian should tithe and repay all debts. That is what honors God and brings glory to his name.
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I’m sorry to hear of your situation being so bad. Debt is not fun nor is dealing with serious health issues and the accompanying bills (which I am very familiar with). It is very sad to know that your last church treated you so poorly and left you with the bills. Your words make it clear that it was not a great experience and that it still bothers you.
But let me get this straight. You are upset with your last church for sticking you with bills to pay, but then you are perfectly willing to declare bankruptcy and leave your creditors in the same boat. In essence, you transferred your old church’s bills (along with some personal/medical debts) to your creditors and left them holding the bag.
Well, sir, I can assure you that if your old church was wrong to stiff you, then it was equally wrong for you to pass that burden along to someone else. It is flat out hypocritical to complain about your old church when you have behaved the very same way toward others. Do you suppose somewhere out there is a lender talking about the pastor that “treated us like crap?”
I’m sorry that you are offended by my post or the comments left by me and others. My intent was to raise a legitimate question and answer it from the Bible. Namely, what is the right thing for a Christian to do when in debt? Should a Christian continue to fully tithe by claiming an obligation to God while at the same time short-changing his creditors with whom he also entered into a covenant by promising to repay? Is one obligation higher than the other? Would it be right to stiff God while repaying the creditors?
I happen to think these are good questions to examine. Aren’t Christians supposed to approach life by asking what the Bible says about the situations we face in life? If I am a Christian in debt, don’t you think it would be wise for me to consult the Bible to see how I should handle my situation? It just so happens that this particular newspaper article brought the issue up with a tangible example to focus on for this topic.
Please note that these questions are inherently focused on the DEBTOR, not the CREDITOR. I am not asking what is the right thing for the CREDITOR to do, but the person in DEBT.
You can talk all day about “grace,” “the love of God,” and being a “good Samaritan” but that is not relevant from the DEBTOR’s perspective. What is the right thing for the debtor to do? The debtor can only choose to repay or not. The LENDER, on the other hand, is the one who may be gracious or a good Samaritan because he is the one who is owed the money. That is something that the DEBTOR cannot control or demand. All the debtor can do is control his own behavior.
After consulting the Scripture, it seems clear to me that God expects us to fulfill our obligations to Him (tithing) as well as to our fellow man (repay our debts). From the perspective of the DEBTOR, I find nothing in the Bible that says the debtor may unilaterally cancel or reduce a debt. On the other hand, the Scripture does contain many examples of LENDERS cancelling or forgiving debts. That’s where grace and mercy come into play. Grace and mercy come from the one who is OWED, not demanded or usurped by the one who OWES. Big difference. It is NOT gracious or merciful for the DEBTOR to unilaterally stiff his creditors.
Since you ask about grace, the love of God, and being a good Samaritan, then let’s turn the question around from the debtor’s perspective. How does a Christian in debt show grace, the love of God, or be a good Samaritan to his creditors? By not repaying at all? By repaying less than he borrowed? Oh yeah, that’s real loving, isn’t it? And I’m sure you’d just LOVE to be treated the same way by others if YOU were the one lending the money. Of course not. So let’s not be ridiculous by appealing to these concepts only when they suit our situation or fancy. It’s a two-way street. Do unto others as you would have them do unto you.
You assert that all sin is equally wrong (gossip, lies, lust, bankruptcy, etc.) and I agree. So are you admitting that you sinned by declaring bankruptcy? Then you agree with my original point. Or are you seeking to excuse your bankruptcy just because others sin? Can a man justify his sin based on the fact that others are sinning? If you believe that, then you’re not fit to be a pastor.
Finally, you ought to be careful about assuming where others have been or not been. How do you know my financial past and current situation — or that of others leaving comments here? You have no clue. Unlike many other personal finance bloggers, I do not discuss my personal situation. But suffice it to say that you have ZERO insight into my experiences or current situation. Otherwise, you would not even bring that up as an issue.
I don’t mean to be harsh but your comment merited a firm response for the sake of other readers. I wish you well in your ministry and pray God’s blessing on your work and family.
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I’ve read the article and people’s comments and just want to say…
UNTIL YOU’VE BEEN THERE, STOP JUDGING!
Yes there are those who abuse bankruptcy lasws,
But I’m a father of four children and a pastor of a new church plant.
I have been paid by the church for over three months. Our last church
treated use like crap and left us with a host of church bills to pay.
Not to mention some medical bills that have hit us hard.
My wife took a job to help supplement income becuase I have tried
repeatedly to get a job and no one even calls back.
So if I keep paying all these bills, I will be physically dead before they are paid
off and the rest of my life will be spent in financial hardship and stress trying to
keep mouths fed and a roof over our head. So much for Christian compassion.
You all act so smug and so holy. What happened to being a good Samaritan?
Where’s the love of God? Is bankruptcy the unpardonable sin? No. And if all
sin is the same in the eyes of God, then your episode of gossip or your small little
lie or lustful thought is just as wrong as me filing bankruptcy to feed my family. -
From what I have heard, the minimum payments on credit cards was supposed to go to 4% but I don’t know if that happened or not. So, for the example above, $10,000 of credit card debt would have a $400 minimum payment. And, even at the old rate, the minimum payment is 2%, which would mean a $200 minimum payment.
Even though credit cards are brutal, I agree with Steve that every effort should be made to pay them off. I also think we should make EVERY EFFORT to teach people not to get into credit card debt in the first place. However, I have my doubts as to whether this would be successful.
JLP
AllFinancialMatters.com -
I believe the reason the minimum payment increased was to protect consumers from skating by with super-low minimum payments that didn’t put much of a dent in their total debt — thus allowing the credit card company to extract even more interest charges over time under the old formula. Granted, the stakes are raised for consumers each month because they have to come up with more of a payment. But anyone living on minimum payments to begin with is playing with fire. It is foolish to get into such a mess.
As you point out, credit card member agreements can be quite revealing but no one is forced to accept such terms. You don’t HAVE to take the credit card. Plain and simple. Sadly, most people don’t read the agreements and blindly sign up for the credit card, go out and run up a huge balance, and then complain when the credit card company enforces the terms. Who’s fault it that? People need to take responsibility for what they get themselves into. If they sign up for such terms, then it’s their fault.
Mind you, I am not excusing credit card companies or other lenders for their outrageous terms or predatory practices. I made this clear in my post. In addition, the Bible clearly teaches that usury is wrong. I have no respect for such businesses.
However, I must come back to the main point. People must take responsibility for their actions. When you sign up for a credit card or other loan you MUST READ THE AGREEMENT. No one forces you to take the card or sign the papers. If state law permits the terms in the agreement (even if we don’t like those terms) then it is up to each of us to “vote with our wallets” and NOT accept the credit/loan terms offered.
As for your example, the lawful balance is the full amount due per the agreement. However, if you are way behind with no hope of repayment and few resources, most credit card companies are willing to work with you to reduce the interest portion of the amount due to a more reasonable balance or simply wave more interest accruals. I don’t have a problem with such agreements when both parties consent AND the lender is made whole. What I don’t think is biblical is to leave the lender unpaid or partially paid by unilaterally declaring the terms via bankruptcy.
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Do you understand the full impact of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, effective October 17, 2005? Are you aware most credit card companies raised minimum payments January 2006?
I agree we should pay our lawful debts in full. “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.” Romans 13:8 What is lawful, then?
Consider the following quotes, copied from a credit card cardmember agreement:
“Default APR: 32.24% variable. See explanation below.*
* All your APRs may automatically increase up to the Default APR if you default under any cardmember agreement that you have with us because you fail to make a payment to us when due, or you make a payment to us that is not honored.
*** Factors considered in determining your default rate may include how long your account has been open, the timing or seriousness of a default, or other indications of account performance.
We apply your payments to low APR balances before higher APR balances. That means your savings will be reduced if you make transactions that are subject to higher APRs.
Rates, fees, and terms may change: We may change the rates, fees, and terms of your account at any time for any reason. These reasons may be based on information in your credit report, such as your failure to make payments to another creditor when due, amounts owed to other creditors, the number of credit accounts outstanding, or the number of credit inquiries. These reasons may also include competitive or market-related factors. If we make a change for any of these reasons, you will receive advance notice and a right to opt out in accordance with applicable law.”For example, a $10,000 balance at 32.24% interest would require a monthly payment of about $337 to pay off in 5 years. If someone can only afford to pay $100 per month, after 5 years, the new principal balance would go up to $34,530. What is the lawful balance after 5 years? Is it $34,530 or $4,000 ($10,000-$6,000) or something else?
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I would suggest the missing dimension in this is the leadership of her church. Why are they receiving the $300 each month, knowing that she has debts to repay? It’s good that she has it in her heart to repay the loan and to give to the Lord’s work, but I’d suggest the leadership of her church graciously suggest that the Lord’s work at this point is to work at paying off the debt.
Shawn
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Your points are well taken but do not present a solid argument on this issue, particularly your questions about what others (namely me) have experienced in life.
Yes, we all feel compassion for someone who has lost a son, is living on Social Security and working part-time at age 68, etc. We can also recognize this woman’s admirable giving over the years, her faithfulness to God, and her devotion to her son who needed help. No doubt about it.
But those points are irrelevant to the question at hand. Namely, is it right for a Christian to continue giving fully to God while simultaneously stiffing his or her creditors? It’s not just about this particular woman’s case (which is an extreme example to begin with) but what is the right thing for any Christian to do? Can a Christian claim a duty to God while also shirking his or her duty to creditors? Is one duty higher than the other?
It seems like a dilemma but it really isn’t. From Scripture it is clear to me that God expects us to fulfill our duty to Him AND to fulfill our duty to our creditors. Neither is more holy than the other. Loving your neighbor as yourself is just as important as loving God. In these is the law fulfilled.
For example, in this woman’s case, why should her $100 per month payments just end after 5 years even though her debts aren’t paid off (as indicated in the article). Isn’t her obligation to continue making those payments until the debt is paid in full?
Instead, bankruptcy cuts off the creditors at a certain point and leaves them holding the bag with a balance due. I don’t believe that is how God expects his children to treat others.
Do you really believe it’s right for someone to use another person’s money (for whatever reason) and then just simply not repay or only repay a portion without the lender’s consent?
You appeal to mercy and compassion for this woman, which she deserves, yet totally disregard any mercy or compassion for the creditors. I’m sure you’d feel much different if it were YOUR money that was lost.
Is there room for mercy, compassion, and even forgiveness of debts, as you indicate with your lengthy list of Scriptures? Sure. But that’s not up to me or you. We’re not the ones who are owed money in this case. It’s up to the creditors. If THEY want to forgive her debts and show compassion, that’s their business. Perhaps if it were you or I in the position of these creditors, then we might freely do so.
The point is, should the debtor be free to impose a partial or full cancellation of that debt on the creditors? I don’t think Scripture gives us that option. Furthermore, I think it is a terrible witness to stiff creditors what they are rightfully due by claiming a higher duty to God. Who would want to serve a God whose children treat others that way?
This woman may never be able to repay (the story doesn’t indicate how big the debt is) but I believe it is her biblical duty to try until the debt is paid — even if she can only send in $5 a month. I wonder if this woman has tried negotiating with her creditors and making alternative arrangements that could lead to full repayment, even if it takes longer than 5 years? Some creditors will work with you and others won’t. (Thankfully the law prohibits creditors from fully having their way by protecting certain assets like homes.)
In the end, however, I just don’t see the Bible endorsing voluntary bankruptcy as a means of relieving our obligations. Christians are called to give to God and repay their creditors. That’s all I’m saying here.
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The story concerns a 68-year old woman seeking protection from creditors through a USA federal bankruptcy court. She took out loans to assist her once-living son. She cannot repay. She is unable. She proposed a plan to repay a portion of the loan over 5 years. She is living on Social Security and part-time work as a nurse at age 68. Perhaps she is a widow? What about her overwhelming grief of losing a son?
Filing chapter 13 costs more than filing chapter 7 bankruptcy, so her intent is to repay the creditors something, anything she can scrape together after she pays tithe and offering.
Some will say “The wicked borrows and does not pay back…” and she should pay back “No matter how long it takes. No matter how much it hurts.” I wonder if such a person has a 68-year old mother? I wonder if such a person had a brother die, with the grieving mother paying the dead son’s bills, and burial costs? I wonder if such a person ever had adversity pass into his life? I wonder if such a person knows anyone with medical bills so high that they cannot ever be paid back, while the person lies in pain, unable to work to pay the bills? I wonder if such a person ever had his son die?
Probably not.
Since we’re all in a scripture-sharing mood, let’s try a few others.
Matthew 5:7 “Blessed are the merciful: for they shall obtain mercy.”
Matthew 6:12 “And forgive us our debts, as we forgive our debtors.”
Matthew 6: 14 “For if ye forgive men their trespasses, your heavenly Father will also forgive you: 15 But if ye forgive not men their trespasses, neither will your Father forgive your trespasses.”
Matthew 7:1-5 “Judge not, that ye be not judged. 2 For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again. 3 And why beholdest thou the mote that is in thy brother’s eye, but considerest not the beam that is in thine own eye? 4 Or how wilt thou say to thy brother, Let me pull out the mote out of thine eye; and, behold, a beam is in thine own eye? 5 Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eye.”
Mark 12: 38-40 “And he said unto them in his doctrine, Beware of the scribes, which love to go in long clothing, and love salutations in the marketplaces, 39 And the chief seats in the synagogues, and the uppermost rooms at feasts: 40 Which devour widows’ houses, and for a pretence make long prayers: these shall receive greater ****ation.”
Job 2:13 “13 So they sat down with him upon the ground seven days and seven nights, and none spake a word unto him: for they saw that his grief was very great.”
Job 6:1-3 “But Job answered and said, 2 Oh that my grief were throughly weighed, and my calamity laid in the balances together! 3 For now it would be heavier than the sand of the sea: therefore my words are swallowed up.”
Job 42: 7-9 “And it was so, that after the Lord had spoken these words unto Job, the Lord said to Eliphaz the Temanite, My wrath is kindled against thee, and against thy two friends: for ye have not spoken of me the thing that is right, as my servant Job hath. 8 Therefore take unto you now seven bullocks and seven rams, and go to my servant Job, and offer up for yourselves a burnt offering; and my servant Job shall pray for you: for him will I accept: lest I deal with you after your folly, in that ye have not spoken of me the thing which is right, like my servant Job. 9 So Eliphaz the Temanite and Bildad the Shuhite and Zophar the Naamathite went, and did according as the Lord commanded them: the Lord also accepted Job.”Perhaps this woman has a house? Would we be happier if she sold her house to pay her debts? Maybe she’s broke enough and just rents a house?
Given her determination to continue to return tithes and offerings and to pay as much to her creditors as she can afford, I overwhelmingly side with her judgment.
May “Mrs. Job” pray for those who offer her their advice.
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I was trying to make the very same point as you in my post but you have done a much better job. Plus you point out some good verses in support. Well done! Thanks for adding your thoughts.
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Another point of view is that paying the debtors first is serving God first. Over and over again, Jesus pointed out that we can identify whether we are serving God by how we treat others. We can identify whether we are bringing glory to God by how we interact with others. Does giving $300 to God every month while only giving $100 to your debtors show Godliness to your debtors? What does the following scripture mean in this bankruptcy situation?: “Therefore, if you are offering your gift at the altar and there remember that your brother has something against you, leave your gift there in front of the altar. First go and be reconciled to your brother; then come and offer your gift.”…or this scripture, “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.” Is there really such a thing as giving to God first and giving to man second? I believe that any giving that fulfills Gods commands whether it is tithing or debt extinction is “giving to God”. Making the two situations separate is like saying “who should I love more, myself or my neighbor?” when Jesus actually said “Love your neighbor as thyself.”
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You are right that the vast majority of bankruptcies end up short-changing the creditors. They don't get all their money back. I believe it is contrary to Scripture for a Christian to stiff a lender like that.
There are 2 ways to end up in bankruptcy. First, the creditors may force a debtor into bankruptcy as a way of recovering at least some of the debts. This is not very common. In such cases a person has no control and must go along with the plan. But, that doesn't mean he is released from the biblical mandate to repay all that he owes — even if he isn't required to by the court. Second, the debtor can file bankruptcy as a means of protection from creditors. This is how most folks end up in bankruptcy, by choosing it voluntarily. I don't believe that is biblical to do. Instead, it is incumbent upon the debtor to monitor his situation and make arrangements with creditors to pay off the debts in full. You don't need to file bankruptcy to do that.
With that said, I'm NOT defending predatory lenders who take advantage of people. They deserve to be put out of business but that's for regulators and law enforcement to handle. It's also up to consumers to be smart about who they're doing business with in the first place and what they are getting into when borrowing money.
UNDERSTAND YOUR LOAN DOCUMENTS COMPLETELY BEFORE SIGNING!
Consult an attorney BEFORE you sign. Don't wait until it's too late!
The bankruptcy court isn't meant to rescue us from our stupidity, lack of preparation, ignorance, or lack of character.
As for attorney ads on the radio — Just because someone says he is a Christian and advertises on a Christian radio station, that doesn't necessarily mean he's offering sound biblical advice.
Edited by stevebraun on Oct. 3, 2006 at 5:55 AM
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Bankruptcy seems to be a way to legally not pay your bills, which would seem to be not quite the Christian thing to do. I realize it’s not as black and white as that, but it annoys me to no end to listen to Christian radio personalities in our area (I’m sure you know what station I’m talking about, it starts with W and ends with Z) promot bankruptcy attorneys. I understand that there are some bankruptcy options in which your creditors do eventually recieve all their payment, but I don’t think that’s the norm.
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Good point! It is no different than keeping our word. That’s an important connection to make.
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Right on, Steve. Great observations! It’s kind of hard for me to even fathom Christians who could in good conscience accept not paying their creditors, even if it took a long time. How is it different than simply not keeping your word?
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Steve Braun
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