Nonprofits usually operate on lean budgets, striving to direct most of their funds to directly helping the communities in which they are located. That said, some nonprofits do borrow money in order to operate more efficiently and better serve the community. There is always a risk associated with taking out debt, and nonprofits are susceptible to financial problems just like any other organization. In some cases, a nonprofit may seek financial relief by restructuring its debts through bankruptcy.

Nonprofit directors considering bankruptcy should not take any action without first discussing their options with an experienced bankruptcy lawyer. Any action taken could result in significant and unforeseen circumstances that could irrevocably impact the organization’s ability to operate and serve the needs of the community. Call our office today to schedule a consultation with a bankruptcy lawyer.

In March, the President predicted a strong and quick economic recovery from the COVID-19 crisis. Unfortunately – and at no surprise to most small business owners – the economic decline continues with no real end in sight.

Most patients diagnosed with COVID-19 will make a full recovery within a few weeks. In contrast, small businesses don’t know when or if they will ever recover from this unprecedented national crisis. What they do know is that they will not come out unscathed. There are no cures or easy fixes for the financial strain that business owners are experiencing. Although the federal government has put programs into place to help struggling small business owners, for some, the economic injuries are already too deep. For others, the programs are a stop-gap that will help them stay open only to face an uncertain future.