Assets Held by Charitable Organizations Are Safe From Claims of Creditors in Bankruptcy Cases . . . Or Are They?
“Property of the Estate” is a very broad and sometimes vague term, which can often lead to disputes over held assets in a bankruptcy case. This ambiguity can be further complicated with large estates or the bankruptcy of charity or non-profit organizations. While many believe that assets like donations or pension funds are protected from creditors in the event of liquidation, some recent cases have shown that this is not always the case. The following article by authors Ileana M. Hernandez, Ivan L. Kallick and Jill S. Dodd examines how charitable organization assets like donations may be treated in a bankruptcy case.