A: We should realize that members over the years, in following Church teaching, have declared bankruptcy. Bankruptcy is a recognized and legal means in this world to free oneself from debts, under certain circumstances. Court decisions have been rendered, involving Church members, dealing with questions regarding tithes and offerings in bankruptcy procedures. Certain state laws allow churches to keep tithes, up to a certain amount and percentage, which were received from members who subsequently filed for bankruptcy.
More importantly, the Bible endorses the concept of declaring bankruptcy in certain circumstances. What is the biblical basis for the Church’s long-standing teaching that the declaration of bankruptcy is not against Scripture, under certain circumstances?
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