Can a non-profit organization such as a church file for bankruptcy?

Asked on November 8, 2013 under Bankruptcy Law, New York


Terence Fenelon / Law Offices of Terence Fenelon

Answered 7 years ago | Contributor

Yes, a not-for profit can file for protection under the bankruptcy code.  The most common form of filing is a chapter 11 in which the organization attempys to submit a plan to the Court for the payment, partial or full, of debts.  They can be expensive and cumbersome but potentially, save the organiztion a significant amount of money.  Consult with an experinced practitioner before proceeding.

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