|
Here's our brush with bankruptcy, though it wasn't due to a lawsuit. Just poor money management.
When I first became an Advisor 10 years ago, I was shocked to find this chapter on the verge of bankruptcy for a variety of reasons. Mostly it boiled down to over-spending and under-collecting. We took out a fairly sizable loan from our House Corporation (their Building Fund) and were able to turn things around within a year with solid budgeting, book keeping, changes in billing and collections.
It was after we'd resolved our financial problems and nearly repaid HC that I went to my first district training seminar. I was shocked when I got raked over the coals by our then Intl Treasurer for taking a loan from HC. According to her if we hadn't been able to repay the loan we might have forced HC into bankruptcy as well. If the chapter had gone under, the HC as a seperate legal entity would not be obligated for the chapter's debts. Therefore the (physical) house would be safe and Int'l could re-charter.
I asked her if we should have gone to Int'ls for a loan and she never really answered. I was left with the impression that we would have been turned down, probably because it was caused by mismanagement rather than legitimate expenses such as remodelling or construction.
|
Threaded Mode