Personal Bankruptcy 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?

 

[Michael Wechsler]

In short, your 501(c)(3) corporation is a completely separate "person" from you. This is why you set up corporations in the first place. If you didn't commingle funds with the corporation, it is completely unrelated to your personal bankruptcy with regard to your personal creditors.