BOB ABERNETHY: In our Cover Story this week, a look at what happens when the courts collect personal debts from tithes and offerings given to churches. There's a growing legal practice that outrages many churches and seems unconstitutional to some religious leaders. Bankruptcy trustees are suing churches on behalf of creditors to get back money given by parishioners who go bankrupt. Jed Duvall has more.JED DUVALL: Personal bankruptcies are on the rise, and so are cases against churches.
MELISSA ROGERS (Baptist Joint Committee): It is an invasion of the church's collection plate and a serious violation of the free exercise of religion.
DUVALL: Churches depend on their members' donations, in many cases, tithes, to pay a large portion of their annual budgets. For thousands of years, such donations have been an essential part of worship in many faiths.
Ms. ROGERS: It is a recognition -- an act of worship, and it is premised on the belief that all that we are and all that we have are God's gifts to us, and its important that we return at least a portion of that to God's service.DUVALL: Today, church officials have to hope that people who give their tithes and offerings do not go bankrupt. Shawn Hodge and his four sons worship every Sunday at the Magic Valley Evangelical Free Church in Jerome, Idaho. In 1995, after giving money to the church for more than 10 years, Hodge and his former wife declared bankruptcy. To the Hodges' surprise, the bankruptcy trustee sued their church and not them.
SHAWN HODGE: Frankly, I was rather embarrassed that my church had to be involved in our bankruptcy at all or go through this trouble because of our bankruptcy.
DUVALL: Bankruptcy authorities first wanted $7,200 back from the church. They've eased that off to $5,200 now. But if the church loses on appeal, it will still be quite a blow. The annual budget here is just over $49,000. Under the bankruptcy code, it is unfair to creditors for someone who cannot pay his bills to spend money without receiving anything tangible in return.
Ms. HAMILTON: Churches have to make the argument that they are doing a service in return for the tithing that's provided. Now, theologically, in most Christian churches, that's an unacceptable argument to make.
Mr. WALDSCHMIDT: Churches have made the representation that they are being singled out. However, they're really not. They are treated no different than a political organization or a college or a private institution or another type of charity.
Pastor RANDALL DAVIS: I can't ask people who come in here, "Have you ever filed or ever do intend to file bankruptcy? If you have, you can't come in. You can't be part of this church."
