Your long-time friend Carl comes to you with a serious problem in his life. He is a believer, and he wants your advice. For years he and his family have lived above their means. They did this by continually refinancing their house and rolling their credit card and other debt onto their home mortgage. However, now that real estate prices are no longer rising but actually falling, Carl can't refinance anymore and can't pay his monthly bills as they come due. He is in a real credit crisis. His creditors are calling him with threatening lawsuits, garnishments, and other unpleasant things. One of his friends at work said that he should file bankruptcy. He comes to you for advice from a Christian perspective. In particular, he wants to know:
1. Does the Bible forbid him to file bankruptcy?
2. Does the Bible forbid borrowing altogether? If not, when is it permissible to borrow money?