Tithing, Charitable Contributions and Bankruptcy

If you have been tithing or making charitable contributions, do you need to stop or reduce it when filing bankruptcy?

The Bankruptcy Court will generally allow up to a 15% charitable contribution of your net income to your church or other charitable organization. If you are giving more, the court may still allow it but will probably look into it more. If you are giving 10-15% to a charitable group, make sure you have records of your giving. The Bankruptcy Court will be suspicious if you “found God” on the eve of filing.

If your contributions are small (less than $50 a month), the Court is unlikely to demand proof. If you give more than $100 a month, you should gather up receipts or ask the charitable organization for a donation history. Most churches and charitable organizations can easily provide this, since it is often requested for tax purposes.

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