The bankruptcy code specifically permits a monthly contribution to a qualified religious or charitable entity or organization as a legitimate expense in a chapter 13 bankruptcy. The code indicates that the monthly contribution may be as much as 15% of the debtor’s gross income. This means that a debtor may have less monthly disposable income by increasing monthly expenses by the 15% religious contribution. Typically, the monthly 15% religious contribution is permitted as an expense in a chapter 7 bankruptcy as well.
The bankruptcy code does not indicate that a debtor must provide proof of a history of monthly religious contributions as a prerequisite of using the monthly contribution as a present and/or future expense. However, it is typical for a chapter 13 trustee to request such proof prior to approving the contribution.
You may contact expert NJ Bankruptcy Lawyer Robert Manchel at 1 (866) 503-5655 if you need assistance and have questions about how bankruptcy protection may apply to your personal circumstances.