Jul. 19, 2021
Charitable Donations and Bankruptcy
Many people find it fulfilling to donate to a charity they wholeheartedly believe in. But sometimes even people generous enough to make charitable donations find themselves considering bankruptcy when the money runs out. If you are in this position, we at the Law Office of Mercedes O. Chut P.A. can help you figure everything out.
Within reason, most courts will work with anyone who donates to charity and then finds themselves filing for bankruptcy. Your bankruptcy attorney 27405 can help you resume your donations afterwards.
In any Chapter 7 case, you’ll have to disclose all of your monthly expenses to the court. When you include church donations in the list of expenses, your bankruptcy attorney greensboro nc will tell you whether the court will consider these expenses reasonable.
Chapter 7 bankruptcies are filed based on your income. If your income is too high you wouldn’t be eligible to file for Chapter 7. However, if by making donations to your church, your income is low enough to qualify, you should be able to file successfully.
Even if you have to file for Chapter 13 bankruptcy you may still be able to make charitable donations to your church. When you state your budget for Chapter 13 filing purposes, include each donation as part of it.
For every church donation you make, keep detailed records and a receipt for each one. The more proof you have, the less likely the court is to question you about your contributions.
It should also be noted that a church pledge card is never considered to be a legally binding document and will not be treated as such in a courtroom. You have every right to stop your church contributions until your finances recover.
A bankruptcy attorney in Greensboro NC can answer any questions you have about bankruptcy laws. You do have the right to donate money to any charity of your choosing, including a church. Just make sure you don’t try to increase your donation amount when applying for bankruptcy.