Can a non-profit 501(c)3 organization file bankruptcy?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

Can a non-profit 501(c)3 organization file bankruptcy?

What are the details for a non-profit to file bankruptcy? How are debtors handled? Who is ultimately liable? Where do we start?

Asked on March 16, 2011 under Bankruptcy Law, Wisconsin

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The hard economic times have hit everyone, profit and non-profits alike.  The answer to your question is yes, the Bankruptcy Code allows a non profit organization to file for liquidation (Chapter 7) or reorganization (Chapter 11).  It is really best for you to seek help from a qualified bankruptcy attorney in your area to discuss your options under the code and the methods for which these filings are handled.  You need to make sure that you are protected legally as an employee of the non-profit as well.  The code will have certain exemptions as well that you are entitled to as a non-profit and that are particular to your status.  Get help.   Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption