Contributions to charities bankruptcy
While by some as a variation on the “Robin Hood” (1) a discussion, others consider the right to decades, (2) to give or charitable purposes, although in the centre of a insolvency proceedings, as a protected constitutional right of freedom of expression of their religious beliefs. Much has been written about the constitutionality of tithing and charity in which the bankruptcy. (3) The problem can arise when the debtor must approve a Chapter 13 debt repayment plan, the future of tithing. (4) The question also arises Chapter 7 in a procedure if a trustee commands a church to return funds given earlier by a debtor tithing before filing a bankruptcy petition. (5) In each context, the issues are similar.
On 19 June 1998, the Congress addresses the issue of tithing bankruptcy law known as religious freedom and charitable donations Protection Act (hereinafter referred to as the Law on the collection of donations). (6) The law expressly allows the debtor, some charitable contributions during a Chapter 13 proceedings and, more generally forbidden to ask the trustees, churches, on income for the prior establishment of ‘religious charities or by a debtor in bankruptcy. (7)
The evaluation of the wisdom of this public policy requires objective facts. To that end, the authors of data collected from bankruptcy courts in Alabama, Arkansas, Georgia, Louisiana, Tennessee, and from 1997. Our analysis focuses on cases of charitable contributions (8) in bankruptcy procedures Chapter 13 of these countries. (9) In particular, we have for you data on numbers and the presumption of “property” of some of these debtors.
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