Bankruptcy Attorney John Skiba Reminds Consumers that Arizona Bankruptcy Protects Charitable Contributions and Tithes

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John Skiba

...I have never had a problem with the bankruptcy court and clients who are charitable.

Mesa, AZ (PRWEB) December 1, 2010

In earlier times people filing for bankruptcy may have had the trustee assigned to their case try and recoup charitable contributions they had made to a church or some other group. However, attorney John Skiba declares that, in response to this, Congress amended 11 U.S.C. § 548 to specifically protect most religious and charitable contributions by those in bankruptcy. Going one step further, Congress enacted The Religious Liberty and Charitable Donation Protection Act which further protected charitable contributions by those in bankruptcy.

Arizona bankruptcy attorney, John Skiba, informs that for a person's donations to be protected in bankruptcy they must meet two requirements or limitations. The first is that the person's charitable donations cannot exceed 15% of his/her income. This allows individuals the right to pay tithes according to many religious beliefs and, in most cases, even gives the person room to a little more charitable giving.

The second requirement is that the person's charitable giving must not be a sudden or abrupt change in lifestyle. In other words, the bankruptcy court must be able to identify that the person has been offering tithes or charitable contributions on a regular basis in the past and are not simply doing it now in order to funnel funds away from the hands of creditors.

Mr. Skiba says, "...I have never had a problem with the bankruptcy court and clients who are charitable." The law holds true even for those that pay a consistent 10% tithing which oftentimes ends up being a considerable amount of money. Congress has implemented this right to citizens in order to encourage charitable giving and promote the religious freedom which the country was founded upon.

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