Debt Forgiveness FAQ: Freedom Through Truth, Faith, and Justice

Is it legal to default on debt?
Is it moral to default on debt?
How can I survive in a world that runs on money?
What’s the upside of defaulting on debt?
Isn’t it hypocritical to use debt if I plan to default?
How can I keep my stuff if the lenders won’t give me title?
What about cryptocurrencies like Bitcoin?
What if the government persecutes me for defaulting?
How does defaulting help society?
Isn’t resistance to injustice too costly?
What about my family? Won’t they suffer if I default?
What is the ultimate purpose of defaulting on debt?
How can I inspire others to follow this path?
What essentials should people get before defaulting on debt?
Won’t this be the end of America and all nations as we know them?
Won’t defaulting destroy my credit score?
Does this apply to all loans?
Does this apply everywhere?

Debt Forgiveness FAQ: Freedom Through Truth, Faith, and Justice

1. Is it legal to default on debt?

Yes. Defaulting on debt is a civil matter, not a crime. Contracts must be based on valid consideration—real value. If the money was created from nothing, the debt itself is fraudulent. Defaulting exposes this injustice.

2. Is it moral to default on debt?

Yes, but only under specific circumstances. Debt default is moral when the debt is rooted in fraud, generated from nothing, or claimed by a party that does not have the right to put you in debt. Paying back such fraudulent debt perpetuates injustice. By refusing to comply with these systems, you stand for truth and justice, aligning with God’s law and rejecting systems built on lies and exploitation.
However, it is essential to distinguish between fraudulent debts and genuine obligations. If a man fixes your roof and asks for $5,000 or some other kind of payment, you should pay him while also educating him that he’s working for nothing because he has rendered a service and rightfully expects compensation.
Note: This particular example (debts owned in fiat) requires nuance and wisdom since so much of modern services and supplies are being held fraudulently. I am using it because of the present stupidity in society where people are willing to work and to work only for worthless fiat. What I am trying to do with this answer is simply provide a degree of expectation that each man has to weigh as he chooses to preserve his life in an immoral environment. How much one exploits or tolerates the ignorance and foolishness of others is up to them. For a fuller discussion, read (What Political System Comes Next?)
For a more obvious example of a legitimate debt, if you agree to purchase farming supplies now in exchange for 1/10 of your harvest later, you are morally obligated to honor that agreement. This is an example of a genuine debts where value has been exchanged, and the service provider or seller has a legitimate claim to your payment. They have given up something real and asked that you pay them back in something real.
Much more than all this, however, one should honor the moral virtue found in others who refuse to participate in the debt based system. To these people you owe your life, because embodied within their integrity is the foundation of society.
On the other hand, debts based on fraudulent systems, such as fiat money created out of nothing or debts claimed by entities with no rightful ownership, are fundamentally unjust. For instance, many landlords who neither possess nor use their properties do not truly own them in the natural law sense. Similarly, many large corporations, because of their structures, do not technically own the goods or services they produce. The more local and labored a product or service is, the more likely it is that you owe the debt, as these reflect real work, value, and rightful ownership.
Refusing to repay fraudulent debts is a moral act of rejecting exploitation, while honoring genuine obligations reflects integrity and fairness. This distinction is key to aligning with justice and God’s law.

3. How can I survive in a world that runs on money?

This is by far the most common and complicated question to answer since it appeals to our fear of failure, death, and our need for safety and security.
The key to surviving in a world dominated by money is to shift your focus from fiat currency to real value and from the provision offered by money to the provision offered by God through Christ*. Build strong relationships and trade skills, goods, and services directly with others based on their virtues. True wealth comes from trust, community, and tangible contributions—not from meaningless digits in a bank account.
If possible, use credit strategically while the system still functions. For example, you may be able to buy assets like gold or other valuable items with credit, then pawn them for cash as needed until fiat money is recognized as worthless. This allows you to engage with the system temporarily without participating in its falsehood. However, you cannot trade your labor for fiat without violating your own rights and perpetuating the lie. Trade requires an exchange of something for something. Since fiat currency is nothing and inherently fraudulent, working for it only strengthens a system built on injustice. It’s much better to work for free, trading your skill for the sake of someone else’s survival or as a reward for their virtuous choices, than to hold your gift’s hostage behind a paywall for nothing.**
The real answer lies in faith and obedience. Jesus said, "Seek first the kingdom of God, and all these things will be added to you" (Matthew 6:33). This wasn’t a promise about luxuries like Internet, air conditioning, or smartphones—it applied to essentials like food and shelter, things we often consider necessary for survival. Be willing to do without luxuries and so called necessities, trusting that God will provide what you truly need.
The word "need" is often misused to justify disobedience for the sake of “practical realities.” Many people, even those who are smart and well-meaning, come right up to the edge of faithfulness but shrink back, saying, “The price is too high.” Faithfulness really does demand your life from you—it’s not a small cost. This is the second birth Jesus spoke about: the life you live after you’ve come to terms with your death and what you are willing to die for. Only when you surrender your life can you fully live in the freedom and truth of God’s kingdom.
To this someone might consider that it’s easier and better to live immorally and within the fiat system. To this we must recognize that not giving your life to truth and virtue means betraying yourself. It’s a choice to live in evasion, frustration, and guilt—a hollow existence where your death becomes a just sentence for sin. Living righteously might seem expensive at first glance, but when you consider the cost of living unrighteously, it becomes clear that faithfulness is the only path to life, joy, peace, and freedom. Remember, it’s not important how long you live. It’s important how you live. Watch this clip by Jim Rohn for inspiration. It’s all risky!
If you use debt, first prioritize obtaining essentials like food, shelter, and survival needs. This will keep you from panicking when the dollar stops being accepted by others. For those with significant credit, use your resources wisely to bless others. If you’ve benefited from the system, consider helping those in need by sharing necessities and luxuries they might not otherwise have.
If you don’t have credit or financial means, be content with a little, knowing that faithfulness is worth far more than anything money can buy. Share the message of debt forgiveness with someone who is wealthy—they may be inspired to use their resources to bless you or others. Together, this shared generosity can build a community rooted in justice, truth, and faith, far beyond the broken systems of this world.
* By “God” I mean all forms of existence. By “Christ” I mean the conscious of God that is embedded in each human whose proper function is submitting to this God by means of rational observation (eg. logic, science, etc). For a fuller treatment of this integration between Christian theology and Ayn Rand’s Objectivism, see The Kingdom of Light
** This doesn’t mean you can’t accept fiat from someone and use that fiat to receive donations from vendors who accept it for services. You, however, cannot REQUIRE fiat for your services, since this devalues your work.

4. What’s the upside of defaulting on debt?

Defaulting liberates you. It can free you to quit a job you hate, pursue meaningful work, and even enjoy the things you’ve always wanted. Max out your credit on things you’ll truly value, like a needed vacation or assets that serve your family. Defaulting severs the chains of financial servitude.

5. Isn’t it hypocritical to use debt if I plan to default?

No. If someone only accepts an unjust tool like fiat money for their services, consider it their choice to participate in the system. By using debt, you redirect those resources toward a higher purpose—exposing fraud and aligning wealth with real value.

6. How can I keep my stuff if the lenders won’t give me title?

You own something when you have it and use it. If no one else has a better claim to it, it’s yours. Ownership doesn’t come from papers or titles—it comes from actually having and using what you own.

Lenders who create money out of nothing don’t really own anything because they don’t have or use the things they claim. Their claims are fake and have no real power.

Remember:

If you can’t hold it, you don’t own it.
Use it or lose it.

This means you have the right to keep what you possess and use, even if lenders try to take it unfairly. Fraudulent systems like fake loans or unfair taxes don’t make their claims valid. What’s yours is yours.

7. What about cryptocurrencies like Bitcoin?

Bitcoin is no better than fiat money. It has no intrinsic value and depends on others believing in its worth. True value comes from physical assets, not speculative digital numbers. Bitcoin is just another tool of deception.

8. What if the government persecutes me for defaulting?

Faith gives you the courage to trust God, even when facing persecution, imprisonment, or injury. Standing for truth may be costly, but this life is not the end.

As Paul said, “If we have hoped in Christ in this life only, we are of all men most to be pitied” (1 Corinthians 15:19). Like Shadrach, Meshach, and Abednego, faith means declaring, “If we are thrown into the blazing furnace, the God we serve is able to deliver us... But even if He does not, we want you to know, Your Majesty, that we will not serve your gods or worship the image of gold you have set up” (Daniel 3:17-18).

Moreover, enforcing a fraudulent contract is itself a criminal act. Anyone—regardless of title or position—who enforces such agreements creates an injured party and is liable to prosecution. Trust in God’s justice and remain firm in rejecting fear, knowing that truth and reason are on your side. God’s power to deliver extends beyond this life, offering the hope of eternal freedom for those who align with His truth.

9. How does defaulting help society?

Defaulting aligns form with function. Debt systems rely on appearances (form) without providing real value (function). By rejecting these systems, you contribute to their collapse, paving the way for a society built on truth and justice.

10. Isn’t resistance to injustice too costly?

Resistance requires sacrifice, but compliance costs your integrity, conscience, and alignment with God. The cost of living in truth is far less than the cost of living in slavery to lies.

11. What about my family? Won’t they suffer if I default?

Caring for your family means aligning with truth, even at a cost. If society rejects your principles, be prepared to live sacrificially for your family, just as a builder counts the cost of a house before starting. Teach your children that freedom and justice are worth any price.

12. What is the ultimate purpose of defaulting on debt?

To align form with function. Systems built on fraud must collapse to give rise to truth. Just as a seed must die to produce fruit, defaulting on fraudulent debt helps birth a just, functional economy that aligns with God’s order.

13. How can I inspire others to follow this path?

Live by example. Refuse to comply with lies and pursue justice with reason and faith. Your courage and integrity will shine as a light, encouraging others to reject unjust systems and seek truth.

14. What essentials should people get before defaulting on debt?

To avoid being drawn into the collapse of governments, corporations, and banks, secure the 7 pillars of preparation:

Food security: At least 3 months of non-perishable food.
Water security: 1 gallon per person per day for 3 weeks.
Self-protection: Tools for both lethal and non-lethal defense.
Communications: Walkie-talkies or radios for reliable contact.
Power security: Solar panels, generators, and fuel.
Barter items: Extra food, water, supplies, and precious metals like silver or copper for trade.
Wealth preservation: Gold to safeguard your assets when fiat systems collapse.

15. Won’t this be the end of America and all nations as we know them?

Yes, and it must be. Nations that prioritize their form—laws, flags, borders, and traditions—over their function, which is to uphold justice, truth, and liberty, cannot survive. Their collapse is not just inevitable; it is just. Systems built on lies, coercion, and greed are like houses built on sand: destined to fall (Matthew 7:26-27).

The end of corrupt nations is not a loss but an opportunity. Just as a dying seed must fall to the ground to produce new life (John 12:24), the collapse of unjust systems clears the way for a society rooted in truth. God’s justice ensures that forms that fail their function will crumble, making way for a world built on principles that honor life, liberty, and the dignity of every person.

This transformation may feel terrifying, but it is necessary for the renewal of the world. It is not the end of civilization; it is the beginning of one aligned with God’s order and design, where justice, love, and truth prevail.

To read more, check out What Political System Comes Next?

16. Won’t defaulting destroy my credit score?

Yes, it will—but that’s not a bad thing. A credit score is simply the banking industry’s way of rating how effectively you support their system. If you make a lot of money and faithfully repay your loans, they reward you with a high score—a modern slave rating that measures your productivity and compliance.

When you stop playing their game, your score will plummet. After I began defaulting on $1.25 million in bank loans, my credit score crashed from 760 to 330. Instead of seeing this as a loss, consider it freedom from a system that enslaves you. A low credit score means you are no longer contributing to the exploitation that the debt-based economy thrives on.

If you’re going to default, do it fast and do it big. Use their tools of deception against them. Maximize your resources before cutting ties, and invest in things that truly matter to you and your family. The credit system only has power if you allow it to define your worth—once you let go of that illusion, you’ll find freedom in living by principles of truth and justice.

17. Does this apply to all loans?

Yes, it applies to all loans—and more. Any transaction involving fiat currency, including so-called secured loans, deposits, or utility contracts, operates within a fraudulent system. The foundation of the dollar and other fiat currencies is based on the creation of money out of nothing. This violates the principle of valid consideration, making these agreements inherently invalid under natural law.

18. Does this apply everywhere?

Absolutely. The principles of logic and natural law are universal, transcending all man-made jurisdictions. They are the foundation for all legitimate governance and justice systems. While specific legal codes and enforcement mechanisms differ by location, natural law applies to everyone, everywhere, because it is rooted in truth and reason.

This universality is reflected in the fact that the same principles—justice, fairness, and the invalidity of fraud—are upheld across diverse cultures and traditions. As foundational truths, these principles are not limited by borders or governments. Instead, they serve as the ultimate standard against which all human laws and systems are judged. Rejecting injustice in one place is a step toward a universal alignment with justice, truth, and freedom for all.

Conclusion

Debt forgiveness isn’t just about rejecting lies; it’s about realigning society with truth and justice. By stepping away from fraudulent systems, you’re not only freeing yourself—you’re planting the seeds for a better world.

Legal and Scriptural Justifications: Illustrative Alignment with Natural Law

Introduction:
Scripture has long been treated as a guiding legal document, shaping the moral and ethical framework for societies and laws. While appealing to authority is not necessary to defend truth—truth stands independently of such citations—it is both illustrative and validating to see how legal decisions and scripture align with the natural law principles outlined in this FAQ.

1. Is it legal to default on debt?

Legal Precedents:

Armstrong v. Toler, 24 U.S. 258 (1826): “Where the contract grows immediately out of and is connected with an illegal or immoral act, a court of justice will not lend its aid to enforce it.”
Scott v. Lloyd, 34 U.S. 418 (1835): Contracts lacking lawful consideration or arising from fraudulent claims are unenforceable in court.

Scriptural References:

“The wicked borrows but does not pay back, but the righteous is generous and gives.” —Psalm 37:21
“Let no one deceive you with empty words, for because of such things God's wrath comes on those who are disobedient.” —Ephesians 5:6

Why These Verses Apply to Legal Debts, Not Modern Fabricated Obligations

“The wicked borrows but does not pay back, but the righteous is generous and gives.” —Psalm 37:21
This verse speaks to the moral duty of honoring valid agreements where both parties exchange something of real value. It does not apply to fabricated debts created by modern financial systems, where banks lend money that does not exist or hold any intrinsic value. In such cases, no legitimate obligation exists because the lender has not provided anything of substance. True righteousness is about fairness, not submitting to fraudulent systems.

“Let no one deceive you with empty words, for because of such things God's wrath comes on those who are disobedient.” —Ephesians 5:6
Modern debts are built on empty promises—money created from nothing and backed by lies. This verse warns against being deceived by such systems, as participating in them perpetuates injustice. Obedience to God means rejecting fraudulent obligations and standing for truth, not enabling deceptive practices that exploit others.

2. Is it moral to default on debt?

Scriptural References:

“Take no part in the unfruitful works of darkness, but instead expose them.” —Ephesians 5:11
“Woe to him who builds his house by unrighteousness and his upper rooms by injustice.” —Jeremiah 22:13
“He who justifies the wicked and he who condemns the righteous are both alike an abomination to the Lord.” —Proverbs 17:15

3. How can I survive in a world that runs on money?

Scriptural References:

“Better is a little with righteousness than great revenues with injustice.” —Proverbs 16:8
“The Lord is my shepherd; I shall not want.” —Psalm 23:1
“Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Can any one of you by worrying add a single hour to your life? And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin. Yet I tell you that not even Solomon in all his splendor was dressed like one of these. If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you—you of little faith? So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.” - Matthew 6:25-34

4. What’s the upside of defaulting on debt?

Scriptural References:

“For freedom Christ has set us free; stand firm therefore, and do not submit again to a yoke of slavery.” —Galatians 5:1
“Come to me, all who labor and are heavy laden, and I will give you rest.” —Matthew 11:28
“I have come that they may have life, and have it to the full.” —John 10:10

5. Isn’t it hypocritical to use debt if I plan to default?

Scriptural References:

“Answer a fool according to his folly, or he will be wise in his own eyes.” —Proverbs 26:5
“The wealth of the wicked is laid up for the righteous.” —Proverbs 13:22
“The Israelites did as Moses instructed and asked the Egyptians for articles of silver and gold…so they plundered the Egyptians.” —Exodus 12:35-36

6. How can I keep my stuff if the lenders won’t give me title?

Legal Precedents:

Johnson v. M’Intosh (1823): “Property is the exclusive right of possession, enjoyment, and disposal.”
Pierson v. Post (1805): Possession establishes property rights through use and control.
McCray v. United States (1904) This case highlighted the principle that property is inseparable from the right to control, stating, “Ownership exists where one has dominion and control over a thing.”

Scriptural References:

“You shall not steal.” —Exodus 20:15
“The earth is the Lord’s, and everything in it.” —Psalm 24:1
“Do not withhold good from those to whom it is due, when it is in your power to act.” —Proverbs 3:27

7. What about cryptocurrencies like Bitcoin?

Scriptural References:

“Why spend money on what is not bread, and your labor on what does not satisfy?” —Isaiah 55:2
“The love of money is a root of all kinds of evil.” —1 Timothy 6:10
“Do not toil to acquire wealth; be discerning enough to desist.” —Proverbs 23:4

Application to Cryptocurrencies:

Cryptocurrencies, like Bitcoin, depend on speculative belief and lack intrinsic, tangible value. The pursuit of such "wealth" aligns with these scriptural warnings about laboring for illusions, pursuing idols, and investing in what cannot ultimately sustain or satisfy. These verses emphasize the importance of grounding wealth and efforts in truth, substance, and enduring value rather than chasing fleeting or deceptive gains.

8. What if the government persecutes me for defaulting?

Scriptural References:

“If we have hoped in Christ in this life only, we are of all men most to be pitied.” —1 Corinthians 15:19
“Blessed are those who are persecuted because of righteousness, for theirs is the kingdom of heaven.” —Matthew 5:10
“Do not be afraid of those who kill the body but cannot kill the soul.” —Matthew 10:28

9. How does defaulting help society?

Scriptural References:

“The Lord works righteousness and justice for all who are oppressed.” —Psalm 103:6
“Seek first the kingdom of God and His righteousness, and all these things will be added to you.” —Matthew 6:33
“Is not this the fast that I choose: to loose the bonds of wickedness?” —Isaiah 58:6

10. Isn’t resistance to injustice too costly?

Scriptural References:

“For what does it profit a man to gain the whole world and forfeit his soul?” —Mark 8:36
“Consider it pure joy, my brothers and sisters, whenever you face trials of many kinds.” —James 1:2
“The sufferings of this present time are not worth comparing with the glory that will be revealed in us.” —Romans 8:18

11. What about my family? Won’t they suffer if I default?

Scriptural References:

“Anyone who loves their father or mother more than me is not worthy of me.” —Matthew 10:37
“Unless the Lord builds the house, the builders labor in vain.” —Psalm 127:1
“The time is short...those who have wives should live as if they do not.” —1 Corinthians 7:29

12. What is the ultimate purpose of defaulting on debt?

Scriptural References:

“Unless a grain of wheat falls to the ground and dies, it remains only a single seed. But if it dies, it produces many seeds.” —John 12:24
“Fallen! Fallen is Babylon the Great!” —Revelation 18:2
“Then I saw a new heaven and a new earth, for the first heaven and the first earth had passed away.” —Revelation 21:1

13. How can I inspire others to follow this path?

Scriptural References:

“Let your light shine before others, that they may see your good deeds.” —Matthew 5:16
“The weapons we fight with are not the weapons of the world. They have divine power to demolish strongholds.” —2 Corinthians 10:4
“Do not be overcome by evil, but overcome evil with good.” —Romans 12:21

14. What essentials should people get before defaulting on debt?

Scriptural References:

"Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest." - Proverbs 6:6-8
“By faith Noah, being warned by God concerning events as yet unseen, in reverent fear constructed an ark for the saving of his household. By this he condemned the world and became an heir of the righteousness that comes by faith.” - Hebrews 11:7
“But watch yourselves lest your hearts be weighed down with dissipation and drunkenness and cares of this life, and that day come upon you suddenly like a trap. For it will come upon all who dwell on the face of the whole earth. But stay awake at all times, praying that you may have strength to escape all these things that are going to take place, and to stand before the Son of Man." - Luke 21: 34-36

15. Won’t this be the end of America and all nations as we know them?

Legal Precedence:

“That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government...” - Declaration of Independence

Scriptural References:

“Every kingdom divided against itself will be ruined.” —Matthew 12:25
“Fallen! Fallen is Babylon the Great!” —Revelation 18:2
“I am making everything new!” —Revelation 21:5