Assets in a non-profit corporation when filing personal bk.

[brokenomore]

I have a non-profit religious corporation that has no assets or cash, but I will soon be working on a project that would require raising $10,000.

When I file my personal bk, then this non-profit corp would have either the cash or assets.

This would be to purchase necessary equipment, and I would receive nothing for my own personal use.

I thought that this would be considered as if it were another person, but the answer I got back from my bk attorney, is that the non-profit assets could be taken.

Does this make sense?

[StartingOver08]

Yes. Everyone with a business has to go thru the same thing with a personal BK.
The business is an asset of the person filing. The fact that your business was incorporated as a non-profit does not change how the business is treated in the BK.

So any asset of your business (non-profit) will be of interest to the Trustee. If it is cash, the $10k you mention above, the Trustee will be very interested in it for your creditors. Be very careful here.

[brokenomore]

This sucks. This would be funds that were donated for a good cause, and I wouldn't see a dime of it for my own use.

[blessed]

Wow. I hope you can find a way to make sure the donated funds go to the cause only.

I would be pissed if I donated to a non-profit and the founder filed bk and lost some of the money. (I know that's the last thing you want to happen, I'm just saying that part of the code is effed up)

[brokenomore]

Now that I know, I can find ways around this, but it makes it more complicated.

I could get someone else to own the equipment, and then lease it from them, but the donations wouldn't go through my non-profit corp and would not be tax exempt.

I could also give up ownerhip of the corp, and let someone else be in control, I suppose.

[blessed]

Better ask a good attorney about those scenarios before you do anything. GL!

[StartingOver08]

Now that I know, I can find ways around this, but it makes it more complicated.

I could get someone else to own the equipment, and then lease it from them, but the donations wouldn't go through my non-profit corp and would not be tax exempt.

I could also give up ownerhip of the corp, and let someone else be in control, I suppose.

Just so you are aware, the Trustee will probably check the public records on your corp filing as well as any other public record. When I was at my continued 341 the Trustee brought up every single corp I had ever had any interest in for more than a decade. Here it is easy to search by name in www.sunbiz.org (Fl) for corp ownership. Its two minutes on the computer.

I mention this because a transfer of a corporation is a transfer of an asset.

As pointed out, get attorney advice before doing anything.

[blockhead]

It's the shares they own (the BK estate) not the individual asset. If I have a company that owns equipment but the company also has debts of its own , the trustee cannot as I understand it, go 'asset stripping' without settling with the company creditors. At least I had that advice from an attorney re a regular C or S corp.