Legal Question in Bankruptcy in California

Re: court recovering tithes to pay debt

Prior to the passage of the Religious Freedom Restoration Act, the Bankruptcy Code pretty clearly allowed recovery by the trustee of tithes and other charitable contributions as transfers of money or property for which the debtor did not receive equivalent value in exchange. The theory is that it is not fair to creditors for the debtor to give away "their" money when they are not paid. Under the RFRA, many courts held that the Bankruptcy Code provision was trumped by the subsequent federal legislation, and that therefore tithes were not recoverable. Then the Supreme Court (dealing with its effect on state, not federal law) held the RFRA unconstitutional. Congress then amended the bankruptcy code itself and decided that charitable contributions up to a certain amount (enough to cover most tithes) were not recoverable. I don't know what legislation you are speaking about, but it seems to me that everything needed to be done to resolve this situation has been done.

Re: court recovering tithes to pay debt

I have heard of the matter of which you have asked. If I recall correctly, you have partially misstated the operative facts. I beleive that the tithes made withinthe proscribed time were recoverable, not the balance.