Question

Does the Biblical concept of "Jubilee" form the basis for the U.S. Bankruptcy systems "discharge" or debt?

Answer 1

A discharge in bankruptcy is a permanent court order through which a debtor is freed of personal liability of some of its debts. The creditors can not pursue the debtors for payment of outstanding debts after the discharge is issued. Debts that come under discharge are lease contracts, medical bills, credit cards and, personal loans, etc. Though a number of debts do not come under discharge, for instance, childcare, student loans, alimony, etc.

In the ancient Hebrew society, a commandment under the mosaic law provided that the debts of the members of the community were forgiven after every seven. Though debts of foreigners were not forgiven. These years of debt forgiveness were termed as sabbatical years. Every 50^th year or the year after 7 sabbatical years, the debts of all including members of community and foreigners were to be forgiven. This year was called the year of Jubilee.