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Charitable Contributions Should Be Deductible for Above-Median Debtors in Chapter 13 Plans According to New ABI Poll

Contact: John Hartgen
             (703) 739-0800
             jhartgen@abiworld.org

 

CHARITABLE CONTRIBUTIONS SHOULD BE DEDUCTIBLE FOR ABOVE-MEDIAN DEBTORS IN CHAPTER 13 PLANS, ACCORDING TO NEW ABI POLL


November 13, 2006, Alexandria, Va.
— A majority (57 percent) of respondents in a recent American Bankruptcy Institute online poll disagreed that above-median income debtors in chapter 13 repayment plans could not deduct charitable contributions when calculating their disposable income under the means test. Forty-two percent of respondents “strongly disagreed” and another 15 percent “disagreed somewhat” that charitable contributions are not deductible for above-median income debtors in chapter 13 when calculating their disposable income under the means test.

Thirty-two percent agreed that above-median income debtors in chapter 13 repayment plans cannot deduct charitable contributions when calculating their disposable income under the means test. Twenty-four percent of respondents “agreed strongly,” while 8 percent “somewhat agreed” that charitable contributions cannot be deducted from an above-median income debtor’s disposable income under the means test. Twelve percent did not know or had no opinion on the issue.

The poll question is based on a case, In re Diagostino, in which a bankruptcy judge ruled in August that a couple who contributed $100 a month to their church could not deduct the contributions from their disposable income under the new bankruptcy law.

ABI members and members of the public were welcome to submit their response to the statement: “Above-median income debtors in chapter 13 repayment plans cannot deduct charitable contributions when calculating their disposable income under the means test (In re Diagostino).” The latest ABI Quick Poll +was open for voting from Nov. 2-Nov. 9.

ABI’s weekly Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.