I am overloaded with debt from Credit Cards and medical bills and my income is less than my monthly expenses and I own very little. My only option is bankruptcy. I am very regretful about getting involved in a credit system which involves interest and for not being able to pay back my debt. At this point I don't have much choice. I was listening to a lecture by a renowned scholar who said: "Debt is not forgiven". I am very worried about this and want to seek Allah's forgiveness. Please advise me about what to do when bankruptcy is my only option. How do I seek forgiveness from Allah for my sin? Please help me brother. I am very worried.
We believe that we are obliged to try to fulfill the rights of the fellow humans (and this includes institutions) before seeking God's forgiveness. However, if you think you have exhausted the best of your efforts and find no other way then you can intend to pay off any debts when you are able to do so and continue seeking God's forgiveness. God knows the most inner layers of our intentions and He knows how sincere we are. All rights of humans are based on God's bestowment and He has the right and power to forgive you. Besides if there is an option of going for bankruptcy and this is a legal provision decided by the system then your failure is more likely to be forgiven by God. Please hope for the best and I pray to God to help and forgive you since you are not cheating.