09-28-2008, 03:34 PM
(This post was last modified: 09-28-2008, 03:35 PM by Director Michael.)
As long as you follow the popularly accepted legal system for loans that are recognized as legally binding in a court of law, then in G-d's eyes there is no sin if you declare bankruptcy without committing any fraud in the process. The companies that loaned to you are aware of the laws of bankruptcy, and they choose to do business under those conditions. Certainly they take this into account when they set their interest rates and loan procedures.