Business Bankruptcy Information California
Please help! CFO of nonprofit and need to file personal chp. 7 bankruptcy?
PLEASE HELP. My parents operate a nonprofit preschool in California. They named me CFO of their executive Board. I need to personally file chapter 7 bankruptcy and am afraid to file because I’m not sure if it will affect their business. I actually work at the school in the office, but I don’t profit in any way from it–I get a regular old paycheck like everybody else. They basically put me on their in name only because I don’t make any major decisions. If I file chapter 7: 1) do I have to list that I am CFO of their business even though I don’t own it? 2) will I have to provide my parents’ financial information or any account information regarding the business; 3) can my creditors reach their business; 4) will their business somehow be affected? Please advise! Any information is helpful. Thank you!!
1) Yes, you do have to list your employer and your occupation.
2) That depends on whether (a) you live with your parents or they live with you, and (b) whether you have an ownership interest in the business or just a position on the board of directors
3) Probably not, unless you have an ownership interest in it
4) Not unless you are a part owner of the business.
That said — do NOT (repeat, NOT) do anything like transfer, alter or change any ownership interests or “redo” any paperwork prior to seeing an attorney.
This is the most common way that clients sometimes royally screw up their own bankruptcy cases – by taking it upon themselves to try to “do something” about some feature of their financial situation at the last minute because they are afraid that if they don’t, something bad might happen.
In reality, most “bad” things that most people “think” might happen in bankruptcy, don’t — at least not if they are honest and up front with their attorney about the exact nature of the arrangement. Often the attorney can protect things that the client didn’t realize could be protected if just left alone.
What is more likely to cause problems is last minute transfers of debts, assets, funds, deeds, titles, ownership interests, etc. because the client is trying to “prevent” something from happening that may not even happen in the first place.
Make an appointment with an experienced bankruptcy attorney and disclose EVERYTHING to the attorney even – or maybe especially – if you are worried that it might be a problem.
A good bankruptcy attorney will be able to give you accurate legal advice about your own situation, taking into account all factors that come into play.
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