Rendering to God and creditors

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It is now up to the U.S. House of Representatives to decide if people can pay tithing while they are in bankruptcy.

Sen. Orrin G. Hatch's bill allowing people to deduct charitable contributions from their bankruptcy repayment plans cleared the U.S. Senate unanimously Saturday. The bill permits reasonable donations to charity while people work through a bankruptcy.

The bill is a response to an August ruling by a federal bankruptcy judge in New York who refused to allow a couple to continue making contributions to the Catholic Church while in bankruptcy.

Judge Robert Littlefield Jr. ruled that the new federal bankruptcy law barred debtors from deducting charitable contributions when their personal income exceeded the state's median. Littlefield said religious contributions had to be included in the family's expenses as part of the bankruptcy plan and become subject to approval by the court.

But the ruling contradicted the Religious Liberty and Charitable Donation Protection Act, which Hatch co-sponsored in 1998, that permits people to continue making charitable contributions while in bankruptcy. Even though Littlefield's ruling is not legally binding on any judges, it did potentially open the door for other creditors to try to disqualify people from claiming religious contributions. That prospect caused concern in Utah, where many people donate 10 percent of their income to the LDS Church and bankruptcy rates are among the highest in the nation.

Rather than risk an appellate court affirmation of Littlefield's decision, Hatch pushed through his bill, S. 4044, with co-sponsorship from Sen. Barack Obama, D-Ill. It now goes to the House.

The bill makes sense. While tithing contributions to churches are considered voluntary, the donors view it as their duty to God. For them, it is a way to show gratitude for God's blessings, as well as repaying a creditor who has a greater claim on them than credit card companies or banks.

While tithing does not produce any material benefit for the one paying it, who is to say that the spiritual comfort and hope it provides is not as important as food and shelterfi It may be just the boost a person needs to make it through the bankruptcy and regain a stable financial footing.

Hatch's bill does not deny the creditor his due, though. It states that the religious contributions must be reasonable. The law would not allow someone to escape creditors by consecrating his entire paycheck to a church. Only contributions up to 15 percent are allowed, leaving money on the table for creditors.

If you believe that a debtor should be allowed to contribute to his church before paying his creditors, contact U.S. Reps. Chris Cannon at 379-2500 or Jim Matheson at (801) 486-1236 and urge them to help get the bill through the House.

This story appeared in The Daily Herald on page A6.

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