ASU 2017-02 was issued to address this unintended outcome, and applies to an NFP that is a general partner or a limited partner of a for-profit limited partnership or a similar legal entity.
A similar legal entity is an entity such as a limited liability company that has governing provisions that are the functional equivalent of a limited partnership.
Specific concessions vary from lender to lender, but may include payment recalculation, lowering or elimination of fees, interest rate adjustment and re-aging of accounts that have fallen into delinquent status prior to the debt management plan.
American Financial Solutions facilitates the debt management plan by setting up an automatic payment system for the client each month and then distributes the correct funds to each of the client’s creditors.
To be substantive, the kick-out rights must be exercisable by a simple majority vote of the limited partners’ voting interests or a lower threshold.
For purposes of evaluating that threshold, the limited partners’ voting interests should exclude voting interests held by the general partners, parties under common control with the general partners, and other parties acting on behalf of the general partners.
Many people are unsure what debt consolidation means, some think it is a loan and others a debt repayment plan.
Throughout ASU 2017-02, any reference to a limited partnership includes limited partnerships and similar legal entities.
Unsecured loans of this nature can come with exorbitant interest rates, so it is best to get financial advice first to make sure this is the way to manage your debt.
It is better to consult with a non profit debt consolidation and credit counseling agency, which will help you make a practical peace of mind financial plan that suits your financial circumstances, and income with a goal of becoming debt free.
American Financial Solutions is a Non Profit 501(C)3 organization providing financial education and credit counseling services including debt management services, and in some states both pre bankruptcy and foreclosure prevention counseling.
The FASB recently issued ASU 2017-02 to clarify when a not-for-profit entity (NFP) that is a general partner or a limited partner should consolidate a for-profit limited partnership or similar legal entity once the amendments in Accounting Standards Update No. The ASU is available here, and becomes effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017.