Non-profit Organization Checking Account

[tsharpe1992]

BACKGROUND:
I live in California. I am filing for Chapter 7 bankruptcy. I have a separate 501c3 tax exempt, non profit organization in which I am the president. This tax exemption organization has a bank account in the name of the organization and receives donations that are deposited in the name of the organization from people who give to the organization to accomplish its goals. I have the authority to make deposits and withdrawals from this account to pay for the organizations expenses. I do not receive a salary from the organization but I am the president.

QUESTION:
Can a creditor sue for personal debt owed and can a judgment go against the 501c3 tax exempt organization to pay a personal debt if I do not include the tax exempt bank account on my personal bankruptcy schedule?

I do not want to include the 501c3 in my bankruptcy because it is not a part of my personal bankruptcy and it is separate but would I be putting my tax exempt organization at risk?

[lrprn]

BACKGROUND:
I live in California. I am filing for Chapter 7 bankruptcy. I have a separate 501c3 tax exempt, non profit organization in which I am the president. ... Can a creditor sue for personal debt owed and can a judgment go against the 501c3 tax exempt organization to pay a personal debt if I do not include the tax exempt bank account on my personal bankruptcy schedule?

Glad to see you come out of forum lurk mode, tsharpe!

Are you personally responsible for or have you personally guaranteed the funds in this account in any way? Do you have any of your own money in this account?

[tsharpe1992]

Non-profit Organization Checking Account

No, I don't personally guarantee any of the funds and I don't have my own money mixed in the bank account.

[tsharpe1992]

Please clarify: Reference 510c3 Checking Account

So if I am not guaranteeing the money in the 501c3 checking account or if my personal funds are not mixed in the 501c3 account, does this mean that the the creditors can not take anything from the 501c3 bank account?. I this correct?

[StartingOver08]

I see that you are an officer of the non-profit corp. You said you are not receiving a salary. Do you receive any sort of compensation from the non-profit? If you receive no compensation at all from this corp, do you have another source of income?

Is the non profit owned by you and only you or are their other members?

This would be a very interesting question to ask your attorney. Usually when you own a corp, the corp is considered an asset of yours and must be included in the BK as an ASSET. The trustee get the accounts receiveable due as of the filing date. I am just wondering outloud if the trustee would consider donations as potential 'accounts receiveable'. The funds in your bank account are at risk if in fact the Trustee considers this to be just like a regular business - but only non-profit taxable status.

Your ownership of the non profit could be a material factor. It would be best to get with an attorney that is very familiar with small businesses (non-profit and otherwise) and BK's. This is too great a risk to evaluate without an attorney versed in this area of BK law.

[tsharpe1992]

The nonprofit has other members. I do not recieve a salary or compensation. I have other income from another source outside of the nonprofit organization.