Local church eligible to file for bankruptcy

Local church eligible to file for bankruptcy

Local church eligible to file for bankruptcy

A local church of the African Methodist Episcopal Church of the United States is eligible to file for bankruptcy protection even though under church doctrine it holds all of its property “in trust” for the national organization, the Bankruptcy Court in Boson has ruled. The Charles Street African Methodist Episcopal Church of Boston filed for bankruptcy protection in 2012, but OneUnited Bank, its principal creditor holding two loans totaling about $4.7 million, moved to dismiss the case. The bank argued that the local church was ineligible to be a debtor under case law making an entity known as a nominee trust under Massachusetts law ineligible to file. It argued that the Charles Street...

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