The National Association of People with AIDS (NAPWA), based in Washington DC, filed for Chapter 7 bankruptcy last month.
“The National Association of People with AIDS (NAPWA) – the largest, oldest and most trusted voice for the 1.2 million people living with HIV/AIDS in the U.S. – has ceased operations and has filed a petition in United States Bankruptcy Court to discharge its debts in bankruptcy and liquidate,” the NAPWA Chair Tyler TerMeer said in a statement.
Court documents indicate the NAPWA owes creditors more than $750,000.
Chapter 7 Bankruptcy
During a business or organizational Chapter 7 bankruptcy, an entity must dissolve following liquidation. For individuals who file for Chapter 7 bankruptcy, creditors have 90 days to file their claims with the court. A liquidation process involving assets also takes place, with money generated being used to pay back creditors.
Chapter 7 bankruptcy is an excellent option for people struggling financially, as it discharges unsecured debt like medical bills and credit card debt. Once a debt has been discharged, a creditor can no longer continue any legal action you to collect repayment of a debt.