James T. Weiner & Associates, P.C. | James T. Weiner
Non profits are NOT owned by anyone individual.. Non-profits are controlled by a board of directors or the Members (depending upon their setup) and in Michigan must have a minimum of 3 directors. The assets of a non-profit MUST be devoted to the ultimate charitable purpose of the non-profit. Because of the above, a bankruptcy of one of the board members, officers or members of a nonprofit should not affect the non-profit at all. In practice it will cause greater scrutiny of the financials by donors who fund the non-profit to be sure that funds are not used personally by the person going bankrupt.
Answer Applies to: Michigan
Ronald K. Nims LLC | Ronald K. Nims
The legal fiction of tax exempt entities (so-called "not for profit") is that they aren't owned by anyone. In reality, every church, hospital, service agency is really owned by the president, managing director or whatever who puts all the profits in his/her pocket. But for bankruptcy purposes, you don't own the tax exempt organization. You may be an employee.
Answer Applies to: Ohio
Danville Law Group | Scott Jordan
The answer depends on what you mean by having a "not for profit". I assume that your are referring a business. Is the business incorporated? If not, it should be. An incorporated not for profit business is a stand alone entity. Your personal Chapter 7 Bankruptcy will have not affect on the business.
Answer Applies to: California
A Fresh Start | Dorothy G Bunce
If you own a not for profit any assets of this entity contribute to the value of it. You would need to disclose your ownership of this entity with the value, and if the value was not eligible for an exemption under state laws, a bankruptcy trustee could sell it to use the proceeds to pay your creditors.
Answer Applies to: Nevada
Garner Law Office | Daniel Garner
As long as the financial affairs of the nonprofit are segregated from your personal affairs, it should not be affected by your personal bankruptcy as long as you fully disclose everything. The main thing the trustee will look for is fraudulent transfers to the nonprofit for the purpose of hiding your personal assets. If everything is above board, it should be no problem.
Answer Applies to: Oregon
Pearson Butler | Jeffrey R. Butler
You still may be able to file a Chapter 7 bankruptcy. But you will need to disclose ownership interest in your non-profit. Although your case is likely to be more technical because of your ownership, a seasoned Chapter 7 bankruptcy attorney can guide you through the process.
Answer Applies to: Utah
Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
Generally, you do not "have" a non-profit; there is no ownership of the entity. You should see an attorney who will review the incorporating documents to make a determine of the status of the non-profit before you move forward with any bankruptcy.
Answer Applies to: California