A school connected to the now infamous Atlanta pastor Eddie Long is shutting down, reports WSBTV.
The New Birth Christian Academy, which had operated for 18 years inside New Birth Missionary Baptist Church, is no more. Tuition ranged from $5,725 for New Birth members to about $6,000 for non-members with more than $1,000 in non-refundable fees, reports NewsOne.
DeKalb Public School is willing to absorb the students, though based on news stories, it didn’t appear that the parents were eager for their children to attend public school.
The Eddie Long school shut down comes at the heels of an odd divorce between Eddie Long and his wife, Vanessa Long, as discussed by FindLaw’s Atlanta Family Law News Blog.
While news reports say the school is closing its doors due to financial struggles and does hope to re-open at some point, it is not yet clear whether a declaration of bankruptcy will be part of the plan. However, a religious school, generally, is registered as a 501(c)(3)
A 501(c)(3) non-profit bankruptcy in Atlanta works much in the same way as a regular bankruptcy, so that Chapter 7 (liquidation) and Chapter 11 are both available. Chapter 13 is not really applicable in this type of situation and is mostly applied to individuals with steady incomes.
In a non-profit bankruptcy in Atlanta, some of the same determinations that go into a corporate bankruptcy will have to be taken into account. Can the “business” recover if it refinances and/or reorganizes? Are there any funds owed? Questions of that sort.
However, there is also likely to be complications when a 501(c)(3) bankruptcy takes place, because of the charitable and non-profit nature of the venture. The basic rule that you should definitely consider an attorney when an institution is involved probably still holds.
Related Resources:
- Find an Atlanta Bankruptcy attorney (FindLaw)
- Pros and Cons of Non-Profit 501(c)3 Incorporation (FindLaw’s Free Enterprise)
- Cremations and Economic Recession Connected? (FindLaw’s Atlanta Bankruptcy News Blog)
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