Week 2

Every week, we will be posting answers to selected questions that you have submitted

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Question:

Dave,
I am confused about bankruptcy. I have been told by some that it is always wrong for a Christ follower, but others have told me it is OK under certain circumstances. Can you help me?

This is not an easy question and well-meaning people disagree on this issue.

The Bible teaches that we have an obligation to fulfill our promises to pay our debts, and that when we make a vow we need to keep it. Proverbs 3:27 states, “Do not withhold good from those who deserve it, when it is in your power to act.” Declaring bankruptcy is wrong if it is used as a means of simply walking away from promises to pay and not dealing honestly with creditors.

On the other hand, there is biblical evidence that God does not want his people to live the rest of their lives in financial bondage due to a situation beyond their control when they have no reasonable means of paying the debt.

I think we need to take a realistic, cautious and prayerful approach to bankruptcy. Bankruptcy may be a viable option to consider if the person with the debt has the right attitude toward their situation. This attitude can be assessed by asking the following questions:
1) Is the person in debt committed to paying off the creditors in the future if the funds become available, even it if takes a long time?
2) Is the person willing to make significant cutbacks in lifestyle to cooperate with the creditors and to free up as much money as possible to pay them?
3) Is the person willing to contact every creditor and let them know the reason for the bankruptcy and their strong desire to do what they can to pay off at least a portion of the outstanding debt?
4) Is the person willing to commit to a financially responsible lifestyle that would keep them from getting into a similar situation again?

When these conditions are met then bankruptcy may be an option for the believer, but only after seeking wise counsel and praying for God’s wisdom.

Question:

Dave,
We don’t have a budget because my husband’s income is different every month and we don’t know how to get started without a fixed monthly figure. I earn a small but irregular income myself. What can we do?

The best way to handle this is for the two of you to estimate how much you will both make in the next 12 months from your fluctuating income. Be realistic but conservative. Then take that total and divide by 12 to get a monthly amount and then budget and spend as if you received that amount every month. The months with more than that will offset the months with less and by the end of the year you should be pretty close to coming out even.
Create a separate “income account” at your bank and deposit all your pay there and only draw out the budgeted amount every month. That way you can “pay yourself” a steady paycheck every month consistent with your budget. Everyone needs to be on a budget to ensure they are getting the most mileage from their income, but especially when there is uncertainty about the amount and the timing of income.

Question:

Dave,
My wife and I are saving a significant amount for retirement through our 401(k)s at work. The problem is we just can’t make a dent in the $11,000 we owe on credit cards that we ran up a few years ago. Are we wrong to put so much emphasis on retirement savings?

Saving through your 401(k)’s is an excellent way to prepare for retirement and I strongly encourage it. However, there is a better way in your situation. I suggest you temporarily reduce your 401(k) contributions to the smallest amount you can contribute and still get the full employer matching contribution (assuming these is a match) and take the rest you were contributing and put 100% of that against paying off the credit card debt. As soon as you have the credit card debt eliminated, you can restore the higher 401(k) contributions and even add what you were paying in interest to the credit card company on top of that.

Question:

Dave,

My wife is not a believer and I am the sole wage earner. We are both good with our money and don’t overspend. I believe in the importance of the tithe am trying to get to a point where I am giving a full 10% but my wife does not support me in this. I give weekly, but always in cash, as I fear the consequences of my wife discovering I give so much to the church. I do not want to keep things from her, but at the same time, I want to give back to God for all the blessings in my life. What suggestions do you have?

When we marry we become in God's eyes "one flesh." I believe God wants us to do everything we can to develop a "one mind" approach as a married couple and to be open and honest in jointly managing our resources. You may find that as you pray and engage in honest discussion with your wife about your desire to tithe, perhaps over time she will support your commitment to give. In addition, giving cash may be costing you a legitimate tax deduction which would allow you to increase your giving for the same impact on your total expenses. Many couples have found that living on a good working budget has facilitated positive communication about money and giving. See if you can get your wife to agree to attend a Good Sense event that will get you started—not only on developing a stronger budget but in opening up new lines of communication about your finances. And keep praying for her.

Question:

Dave,
I just received a huge sum of money from a small business I just sold and I want help with the biblical perspective on tithing. Should I tithe on the interest that will be earned as this money is invested or the total amount of the sale proceeds or both?

In Deuteronomy, we are told the tithe is based on the “increase” in the goods and crops that represented God’s blessing during a given period. In biblical times, if you were given some sheep or goats then that would represent an increase in your wealth and would be the basis for a tithe. When the animals had offspring, that would also represent an “increase” and they would also be tithed. Following that example, both the money from the sale and the interest represent an increase in wealth and would be the basis for your tithe.

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