Bankruptcy

Facing overwhelming debt can feel exhausting, frightening, and isolating. If you’re thinking about filing for bankruptcy, know this first: there is grace in every financial situation, and seeking help is a wise and courageous step.

Bankruptcy is one option people explore when debt feels unmanageable. At FaithWorks Financial, we believe it’s important to fully understand both the potential impact of bankruptcy and the Christian bankruptcy alternatives available, so you can make an informed decision that aligns with your financial goals and your faith.

FaithWorks Financial is not a law firm and does not offer legal advice. We suggest speaking with a qualified debt relief attorney to understand what bankruptcy would look like for you.

Understanding Bankruptcy and Its Long-Term Impact

For some individuals, bankruptcy can provide meaningful relief. However, it also comes with lasting consequences that are important to consider prayerfully and carefully:

• Your credit report may reflect a bankruptcy filing for 7 to 10 years
• Bankruptcies are public court records, surfacing during background checks for housing, employment, or loans
• Access to future credit can be difficult, often with higher interest rates
• Increased interest costs over time may offset the savings of today’s debt forgiveness
• Legal and attorney fees may add unexpected expenses, and bankruptcies regularly fail

None of these realities define your character or your faith — but they do shape your financial future.

Bankruptcy and the Bible

One only has to turn to Psalm 37:21 – “The wicked borrow and do not repay…” to be quickly reminded of the importance of repaying our debts. However, scripture consistently reminds us that God’s heart is full of mercy, restoration, and guidance — especially during seasons of hardship.

“The Lord is gracious and compassionate, slow to anger and rich in love.”
— Psalm 145:8 (NIV)
Read on BibleGateway

At FaithWorks Financial, we do not believe Scripture exists to shame or condemn those facing financial difficulty. Instead, we see it as an invitation to seek wisdom, accountability, and paths toward restoration.

Many Christians choose to explore alternatives to bankruptcy because they desire a solution that:

• Preserves dignity and hope
• Honors personal responsibility
• Encourages long-term financial healing

But that choice is personal and based on your specific circumstances. Determining if bankruptcy is appropriate and necessary requires compassionate guidance and discernment, not judgment.

There may be seasons and situations where bankruptcy is makes sense, and we believe that God’s grace meets us in these moments.

A Christian Alternative to Bankruptcy

We believe that a Debt Settlement program is a more aligned solution when it can be afforded. Debt settlement allows you to eliminate unsecured debt and regain control of your finances without feeling like you turned your back on your obligation.

Debt settlement, or debt negotiation, is a way to at least repay a portion of what you owe rather than letting it go entirely. This approach is designed to help individuals reduce and resolve unsecured debt while working toward financial stability—without many of the drawbacks associated with bankruptcy.

Debt settlement is a bankruptcy alternative that allows many people to:

• Avoid bankruptcy
• Settle debt for less than the full balance owed
• Work toward restoring financial control at a sustainable pace
• Rebuild a financial foundation grounded in restoration and stewardship

Bankruptcy is a big decision. Every situation is different, and we believe clarity comes through conversation with wise counsel and prayer— not pressure.

Support for Whatever Path You Choose

There is no single “right” answer when it comes to debt — only the right next step for your situation. These are personal decisions for you to make with guidance and prayer.

FaithWorks Financial does not provide legal advice, but we do respect it. We’re here to help you prayerfully and practically evaluate bankruptcy alongside Christian debt settlement and other relief solutions.

In many situations, we can also help connect you with a qualified debt relief attorney or local Legal Aid organization, ensuring you have access to the affordable support and guidance you deserve.

Reach out for a free, confidential consultation and let’s explore your options together — with grace, clarity, and hope.