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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Can a non profit organization file bankruptcy and if so what

Customer Question

Can a non profit organization file bankruptcy and if so what are the consequences of this
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi lidia,

A non-profit organization can file a Bankruptcy. The result would be that all creditors would have to get their money from the Bankruptcy court. There is no discharge of debts in a company Bankruptcy.

I am not sure if I answered your question. If not, please let me know.

Thank you!

Customer: replied 6 years ago.
Relist: Incomplete answer.
It is a general response and it doesnot indicate the consequence like will there debt be consolidated or what. I knew that business debt is not discharged but what happens this is not only a business this is also a nonprofit
Expert:  cfortunato replied 6 years ago.
I will opt out of this question, so that someone else can help you further.