Consumer Investigation: Nonprofit Says it Can’t Afford a Bankruptcy Attorney ...Middle East

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Consumer Investigation: Nonprofit Says it Can’t Afford a Bankruptcy Attorney

FAIRPORT, N.Y. – Elderly residents at The Northfield in Fairport are demanding answers from Family Service of Rochester, the non-profit forcing them out of their homes in less than two weeks due to financial struggles.

“Why didn’t they address this a couple of years ago,” said Barbara Weeks, a resident at The Northfield. “If they had to raise rent, they had to raise rent. But at least we had an option back then. We don’t have any options right now.”

    News10NBC obtained an audio recording of a meeting on Monday where board members for Family Service of Rochester were asked why they didn’t reorganize under bankruptcy protection. Board member Jean Lowe responded, “We don’t have the financial resources to hire a bankruptcy attorney to file for bankruptcy.”

    Leslie Silva, principal at McCall Sweeney and Silva, said that’s a red flag. “There are attorneys out there that can provide services for a bankruptcy proceeding and they can be paid in a restructuring plan at the end,” Silva said.

    Silva added that not wanting to go through the bankruptcy process is concerning because it makes Family Service seem like they have something to hide, whether or not that’s true.

    There’s no doubt at least two creditors would be demanding their money if Family Service filed for bankruptcy. Waste Management won a judgment against the non-profit in May for more than $6,600. In 2023, Medical Staffing Network sued Family Service as well for an unpaid debt of more than $15,000.

    Staff at The Northfield are scrambling to help their soon-to-be homeless residents. “There’s still no plan in place for them,” said Jessenia Colon, a medical tech at The Northfield. “There’s still probably over 30 people here that still haven’t found a home.”

    When pressed about what will happen to seniors who can’t find housing, board member Jean Lowe said they’d be forced into places they didn’t choose, which could include shelters.

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