If you’re talking about a small, hometown bank – yes, I can see it being a possibility. But a large multi-nation “bailout” bank… never, no way, no how.

And that… is why I am so picky about the banks I choose. The only large bank I have ever dealt with that seemed to have “pleasing their customers” as a priority – is ING Direct. Other than them, I only bank locally.

An acquaintaince of mine owes me about $125. I had told him a couple months ago that, given his income situation, I didn’t expect him to repay me except as he may be able. Later on, in my heart I have written the debt off and forgiven this money, as I have asked around and figured out that he is addicted to crack cocaine, which may kill him (he also has mental heath issues).

He comes to me every month with about $20 to repay the money, which I accept because he is so earnest about it and is so grateful to me for extending him small amounts of credit in the past, although it boggles my mind that he can do this while “supporting” a crack addiction.

What is my point? I’m not sure. But maybe my point is that I think it is the creditor’s obligation to have some reasonableness and compassion. In the first place, it is wrong to extend credit to people to a degree that shackles them unduly, and it it wrong to expect them to have to go to extreme hardship to repay their debts. That’s why the traditional banker had specific ratios that they obeyed when eveluating how much credit to extend. The Hildebrand’s lenders did not obey these strictures. And I feel that maybe lenders who extend unreasonable amounts of credit ought to recognize their culpability in doing so and forgive part of it when it becomes an unreasonable burden. Basically, they screwed up and didn’t do their job right. Doing their job right would have involved evaluating the lendee’s overall financial situation more accurately so as to avoid overlending. That is really how I feel about it.

then debts can only be forgiven after the debtor’s death and the depletion of their estate, never during their lifetime, since the ability to repay cannot be absolutely measured until the time of a person’s death, when all of their earning necessarily stops.

While I respect the Hildebrandt’s grit and can see this from both perspectives, I feel that they may have taken a moral injunction much too literally in this case. But kudos to their conviction and follow through, I’m sure they have a lot to be proud of from this accomplishment.

http://www.familymeans.org

http://www.nfcc.org
The NFCC provides referrals to certified financial counselors around the country, just click on the ‘find a counselor now’ link.

Cheers BG!

But to work multiple jobs, 100 hours a week, for years on end, sleeping in a car between jobs, going without clothes & food, and not able to see his family is insanity. If that amount of effort was required to repay the debt, then I would not qualify that as “able to repay” — and neither would any bankruptcy judge, I bet.

I’d like to know: at what point, in your mind, would a debt become “too much to repay”. Sacrificing like they did for 10 years? 20 years? his entire life?

It sounds like the Hildebrandt’s lenders really shafted them by raising the interest rates: and that is allowed by the rules we live in today, and so is bankruptcy. Bankruptcy is our protection from these predatory lenders, and bankruptcy is the reason lenders charge really large interest rates — it’s a balance.

If anything, the current laws lean more heavily on the lenders side than the Bible does. The Bible says to charge NO interest, and to also forgive the loans after seven years! (Deuteronomy 15)

Why anyone would willfully chose to go through this amount of suffering is beyond me, when the system is stacked so heavily in favor of lenders, and yet they ignore the one “out” that our current laws, and the bible, says they had.

Provers 27:12
The prudent see danger and take refuge,
but the simple keep going and suffer for it.

What they did is equivalent to building a house without a hammer: commendable (by the feat that is accomplished), but still dumb (effort wise).

Biblically, debts could only be forgiven by the lender, never a third party (such as government.) Now-a-days, it is very rare for the lender to forgive the borrower of their own accord based on their own righteous mercy.

Also, the bible instructs that the debts should be repaid, and can be forgiven only if the borrower is unable to pay. Obviously the Hildebrandt’s were able to pay, so this would not be an option for them… biblically.

Here are a few quotes directly from the Hildebrandt’s as to why they decided to take the route of repayment:

Kandy Hildebrandt said, “Bankruptcy just wasn’t an option. It didn’t feel right and it’s not our character.”

“We did it. We made it. And there’s a sense of pride there,” Russell Hildebrandt said.

They made their final debt payment on June 29 and Russell Hildebrandt was able to quit his second job. “I went outside at 5 a.m. and literally screamed as loud as I could, ‘I’m done!’” Hildebrandt said.

He’s enjoyed finally spending some time with his family and said it’s nice “to have a normal life” again. “I’m not proud of how I got to where I was,” he said, “but I’m proud of what I did to get out.”

I hope this helps answer your question BG, thanks for stopping by.

Our countries bankruptcy laws are founded on biblical principles.

It is obvious that the lenders didn’t even expect to be paid back, due to their increasing of the interest rates on the debt.

I guess some people truly are slaves to the lender, even when the door to freedom is wide open.

I suppose financial management is similar to healthy eating… it’s not about “going on a diet” it’s about permanently changing the way you live!

What’s impressive about Mr Hildebrandt was his ability to stay focused on his debt free goal for four years. +100 hour weeks for +4 years is an insane amount of work.

I noticed that he had a 1 hour commute to work. I hope that they bought a home closer than that during the get out of debt phase since they were buying a home.

@Mom: Your debt story is encouraging! I will cheer your debt elimination on as you do mine.