WASHINGTON — Congress approved a bill Dec. 6, 2006, that allows people who have filed for bankruptcy to continue to tithe and to make charitable contributions.
Earlier this year, a New York court ruled that debtors above the median income must pay off their debts before giving to charity or tithing.
The Religious Liberty and Charitable Donation Clarification Act of 2006 responds to that ruling by tweaking bankruptcy rules passed by Congress in 2005. It ensures “that all individuals in bankruptcy, no matter their income, would be able to continue giving to charity and their church,” according to a statement from the office of one of the bill’s sponsors, Sen. Barack Obama, D-Ill.
“Congress has a long history of protecting our religious freedom to tithe,” said another bill sponsor, Sen. Orrin Hatch, R-Utah. “That was our intent when we enacted bankruptcy reform [in 2005], and this bill clarifies the law so that those who tithe can continue to live their faith while in bankruptcy.”
More than 2 million Americans filed for bankruptcy protection in 2005 and hundreds of thousands were expected to do the same by the end of 2006, according to the National Association of Consumer Bankruptcy Attorneys.
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