Nonprofit organizations face their own unique challenges. In the past, nonprofits dealing with overwhelming debt have simply closed their doors. Now, more and more are turning to bankruptcy to help them move forward with their mission. However, the nature of nonprofits makes the bankruptcy process substantially different than it is for businesses or individuals. At Balbus Law Firm, we understand how to guide nonprofits through the bankruptcy process.
What Type Of Bankruptcy Should A Nonprofit File?
As in all cases, the type of bankruptcy filed will be based on the specifics of the situation. Like a business, nonprofits may benefit from filing Chapter 11. Of course, Chapter 11 is complex. In some cases, Chapter 7 may be more appropriate. We will review the options and help you determine which is most appropriate for your nonprofit organization.
How Bankruptcy For Nonprofits Differs
Nonprofits are not owned like businesses. They do not have shareholders, so they are not subject to certain rules that businesses might be, like the absolute priority rule in Chapter 11. In many cases, not being subject to these rules may make it easier to discharge debt. However, there will be other challenges. We assist nonprofits with bankruptcy, overcoming challenges and putting them back on track to achieve their goals. We can work with foundations, churches, community service groups and more.
To Learn More About Bankruptcy For Nonprofits, Contact Us For A Free Initial Consultation
For more information about bankruptcy and nonprofits in a free initial consultation, call 203-286-4121 or email us.
Balbus Law Firm is a debt relief agency. We help people and businesses in New York and Connecticut file for bankruptcy relief under the Bankruptcy Code.