Keeping Treasurer Position after Filing Bankruptcy

[Optimistic09]

We have made the decision to file bankruptcy but have not filed. As that time gets closer I think about different ways it may impact us.

I have been treasurer for a local non profit organization for about two years. The thought occurred to me that when we do file bankruptcy and if the organization knows it they may want me to resign. I don't believe I am obligated to tell them any more than I would have to tell an employer. We do not plan to talk about our bankruptcy with others but realize it is public information and word of it could very likely be spread.

My thought is not to bring it up but if it is brought up and they want me to resign I would understand. They may think I am no longer trustworthy, honest etc. I know I am and that is why I do not want to bring it up in the first place.

Has anyone here been in the same position? I would welcome feedback.

[Flamingo]

First, unless you have an employment contract with your employer that states that you must disclose to your employer that you filed bankruptcy, you are in no way obligated to tell them. Secondly, if you have been there two years they should know you and your habits by now and realize you are trustworthy or you would have been replaced long ago. Thirdly, filing bankruptcy makes all filers act differently at work and elsewhere with all that is on their minds, numerous personal phone calls, appointments and details...coworkers always know when something is up. Lots of people can hear someone talking on the phone and they have no idea those people can hear. If you don't want anyone in this organization to know, be quiet and careful.

If you are approached if it is published in your local paper that you filed, tell them you have been hit hard financially by the economy and you are working to make things better in your financial life but it has no effect on your job.

[Optimistic09]

Thank you.
This helps confirm to me that just keeping it quiet is the best. Bankruptcies aren't announced in our local paper but I could see it be made known by word of mouth.
I did not make it clear that this is a volunteer position as treasurer but I would still would like to keep doing it.

[OhioFiler]

This is a non-issue.

[whipster1]

Actually you are much less likely to abscond with funds after BK than you are beforehand. You will shortly have no debt.

[Optimistic09]

I read a post on the forum and now I can't find it but it indicated that as treasurer the checking account of the organization would need to be listed in the bankruptcy. I looked back on the bankruptcy forms and it asks for property that you own and I don't own the checking account but my signature is on file so I can write out checks. I am so hoping it doesn't have to be listed.

[BobMango]

I read a post on the forum and now I can't find it but it indicated that as treasurer the checking account of the organization would need to be listed in the bankruptcy. I looked back on the bankruptcy forms and it asks for property that you own and I don't own the checking account but my signature is on file so I can write out checks. I am so hoping it doesn't have to be listed.

My experience is that it will have to be listed. My wife holds various positions with a number of non-profit organizations and we had to list every account, and provide bank statements for those accounts as well.

I'm not sure exactly what kind of issues would arise if you don't disclose and the trustee discovers them. Potential seizure of those funds, dismissal for fraud? Certainly a number of uncomfortable questions as to why you didn't disclose.

We also had to list a friend's travel trailer that we let them store on our property. My understanding is that not disclosing property that we held for others could lead to that property being taken. Not something I wanted to risk.

[Flamingo]

I read a post on the forum and now I can't find it but it indicated that as treasurer the checking account of the organization would need to be listed in the bankruptcy. I looked back on the bankruptcy forms and it asks for property that you own and I don't own the checking account but my signature is on file so I can write out checks. I am so hoping it doesn't have to be listed.

What the issue is here is that you have access to those funds. What is listed in any bylaws or organizational paperwork as to the duties of its officers and is anything mentioned as to any of the officers having to disclose they have to file bankruptcy? Are two signatures required on checks written from that account? You do not own these funds but have access to them so a lot depends on the wording in any paperwork for the organization as to your duties and whether or not under the circumstances you would have to resign your position. Would not hurt to check with an attorney as to all this to be on the safe side.

[Optimistic09]

Thank you for your replies. I heard back from my attorney today and was told that I do not have to list this account. Even though I am a co-signer the bank account does not belong to me and therefore I have no 'property interest' in the account. I have access to the account but I could not use any money in the account without committing a crime so for sure this is not my property.

I have read the by-laws and they did not include anything about revealing if you filed bankruptcy so there is no obligation with that. Even though bankruptcy is public information we are being as discreet as we can so I am glad that the board will not need to be informed.