A New York federal judge has ruled that some people going through bankruptcy may not make charitable or religious contributions.

The ruling last week by Judge Robert E. Littlefield in U.S. Bankruptcy Court for the Northern District of New York could affect whether hundreds of Utahns who file for bankruptcy protection each year will be prohibited from paying tithing or other contributions while they are in bankruptcy. At one filing per 39.5 households in 2005, Utah ranks No. 3 nationally in bankruptcy filings.

The Religious Liberty and Charitable Donation Protection Act of 1998, signed by President Bill Clinton, allowed tithing and charitable giving under the federal bankruptcy code. But a new bankruptcy reform law that went into effect last year has clouded whether such donations are permitted.

According to Kevin Anderson, standing Chapter 13 trustee in Salt Lake City, the New York ruling will have no effect in the short term for debtors filing for bankruptcy in Utah. Anderson added that bankruptcy judges in Utah are favorable to allowing debtors to make charitable contributions as it relates to the 1998 law. To date, no one in Utah has objected to bankruptcy filers making such contributions.

"Congress went to all this effort to pass the Religious Liberty Act of 1998 to make charitable contributions allowed," Anderson said. "I don't think Congress undid that with the new bankruptcy amendments."

But Henry Sommer, president of the National Association of Consumer Bankruptcy Attorneys, an organization that represents debtors, said the New York ruling could offer creditors ammunition in challenging bankruptcy debtors who choose to make charitable contributions.

Members of The Church of Jesus Christ of Latter-day Saints are expected to pay 10 percent of their gross income to the church. Roughly 30 percent of Utah bankruptcy filers make at least some charitable contribution, Anderson said.

"It's not just LDS," Anderson said. "That's far and away the majority of it. We see it from lots of different churches."

Debtors who elect to pay tithing while going through bankruptcy must provide proof that they are making the contribution as part of a monthly budget submitted to the court. Contributions may not be more than 15 percent of a filer's gross income and are accepted as a reasonable living expense.

Prior to the Religious Liberty Act of 1998, bankruptcy judges allowed debtors to budget for entertainment expenses — including movies, restaurants and gambling — but not for the collection plate at church or a charity of one's choice, according to a statement by Sen. Chuck Grassley, R-Iowa, who sponsored the 1998 legislation.

"Many who practice their faith and believe that they are bound by creed to tithe a portion of their income will find that Congress effectively decided that what credit cards want is more important than the deeply personal religious practices of Americans," said Sommer, who added that the new law places credit card companies over churches.