In this information sheet, the topic of bankruptcy is explored through a series of questions addressing many common concerns of nonprofit organizations from both the perspective of debtor and creditor. The answers offer a starting point for a nonprofit to evaluate whether the remedy of bankruptcy can help it achieve a more sustainable economic future through a reorganization, or whether the time has come to “close with honor.” Also considered are the ramifications for a nonprofit when its landlord or a key supplier files for bankruptcy protection.
