If I have a not for profit, what happens to it if I do a personal Chapter 7 Bankruptcy? 15 Answers as of October 16, 2014

I might need to do one at a later time.

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James T. Weiner & Associates, P.C.
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
Replied: 10/16/2014
Rhymer Law Firm
Rhymer Law Firm | William Rhymer
It depends on the value of the assets of the non-profit. There could also be a question of the cash flow and whether any of the money was used for your personal expenses.
Answer Applies to: Georgia
Replied: 10/16/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
You should be able to continue the business, whether for profit or non-profit after filing bankruptcy.
Answer Applies to: Minnesota
Replied: 10/16/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
That depends on how well you have kept your books. You need to consult with local counsel.
Answer Applies to: California
Replied: 10/15/2014
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
Replied: 10/15/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    I am sure that there is little value to the stock of your non profit. Therefore any value will be protected.
    Answer Applies to: California
    Replied: 10/15/2014
    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
    Replied: 10/15/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Nothing really, unless the Not For Profit has assets.
    Answer Applies to: Colorado
    Replied: 10/15/2014
    A Fresh Start
    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
    Replied: 10/15/2014
    Law Office of Susan G. Taylor
    Law Office of Susan G. Taylor | Susan G. Taylor
    Any business interest must be valued & listed as an asset; what happens to it depends on the nature of the business, whether it's marketable, & what exemption scheme you're under.
    Answer Applies to: Texas
    Replied: 10/15/2014
    Garner Law Office
    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
    Replied: 10/15/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Nothing, it passes through the bankruptcy untouched if it has no assets.
    Answer Applies to: New York
    Replied: 10/15/2014
    Pearson Butler
    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
    Replied: 10/15/2014
    Steele, George, Schofield & Ramos, LLP
    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
    Replied: 10/15/2014
    Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
    Nothing. You have no equity interest in a nonprofit that you operate.
    Answer Applies to: Illinois
    Replied: 10/15/2014
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