Spiritually Sound, But Many Churches Literally Bankrupt

In trying times, many turn to the church to ease anxieties, but even houses of God haven’t been spared the wrath of recession, the Wall Street Journal reports. A church building boom begun in the 1990s has left many congregations overextended, and with the economic slowdown taking a sizable bite out of donations, many are turning to Chapter 11 bankruptcy.

Long considered good credit risks, carrying little or no debt and a reliable income, the nation’s 335,000 churches are facing foreclosures at rates lenders haven’t seen before. “There have been too many churches with a ‘build it and they will come’ attitude,” one lender said. “They had glory in their eyes that wasn’t backed up with adequate business plans and cash flow.” (More church stories.)