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In a last-minute move to stay off the auction block, a Camp Springs church and school facing millions in unpaid taxes and mortgage payments declared bankruptcy Monday night.

The 150 students at Progressive Christian Academy won't be affected by the bankruptcy, school officials say, since classes will continue to operate on a regular schedule.

Progressive Baptist Church, which runs the academy, filed for Chapter 11 bankruptcy less than 24 hours before an auctioneer was scheduled to sell off the 11.6-acre property Tuesday. The church owes around $2.8 million on its mortgage to M&T Bank, on top of $1.8 million owed in federal and state taxes, according to Prince George's County Circuit Court documents.

Pastor Don DeJuan Massey, who has led the church since it opened in 1998, said at least three families removed their children from the K-12 school after learning about the possibility of bankruptcy last week, but he does not anticipate a mass exodus.

"Many [parents] continue to affirm their intent and desire to be with us," Massey said. Echoing a sign posted in front of the church, he added, "We're here to stay."

A letter Massey sent home with students on Tuesday indicated the school will host a meeting for parents at 6:30 p.m. Oct. 1.

Mark Datcher of White Plains, picking up his 11- and 16-year-old sons after school Tuesday, said he plans to keep them enrolled. He cited small class size and Massey's accessibility to parents as reasons he was staying.

"I think it's a great school," he said. "I think the school will be beneficial for them as far as … getting into a good college."

The school's financial troubles began about four years ago, when student enrollment and church membership began shrinking, Massey said. At its peak, the school had about 450 students; today approximately 150 students are enrolled.

He attributes the loss to families moving away and the recent economic downturn, which he said has made it more difficult for parents to pay the $6,500 average annual tuition and for the church's 200 parishioners to donate as much as they had in the past.

Prior to declaring bankruptcy, Massey said he met late last week with representatives of M&T Bank — which took over the mortgage from the now-defunct Bradford Bank on Aug. 28 — to negotiate a resolution. Under Chapter 11 bankruptcy, the church and school can continue to operate while restructuring their finances.

M&T Bank spokesman Phil Hosmer declined to comment on the matter, except to say in a written statement that the bank's policy is to "listen to a reasonable proposal from a borrower to avoid a foreclosure."

The property includes the school, which opened in 1999, along with a church, gymnasium and a residential home. The school also has a campus in Waldorf for between 10 and 15 students, which opened in 2006 and will also be unaffected by the bankruptcy, said education director Myra Allen.

In addition to the school, the church also runs dozens of other programs, Massey said, from summer athletic camps and afterschool care to health fairs and rehabilitation programs for ex-offenders.

Massey acknowledged the school has also had "administrative issues" in the past that affected day-to-day operations. He would not specify what those were, except to say former principal Melvin Blount and another administrator resigned earlier this month. The school has yet to refill the principal position.

One former parent, Sabrina Terry of Temple Hills, said she pulled her son from the school in 2006 after a year in the kindergarten program because of high teacher turnover. There are 14 teachers and two staff members at the school this year, according to Massey.

"He had six different teachers in one year," Terry said. "You never knew what the next day was going to bring."

Terry is among several dozen parents the school has sued since 2008 for unpaid tuition, a charge Terry said is false and has prompted her to seek legal counsel. Massey said he was unfamiliar with Terry's situation but that he had hired Towson lawyer Michael Fradkin to take action against parents who failed to make payments.

Fradkin, of Fradkin and Weber, PA, declined to comment on the lawsuits or Chapter 11 filing except to confirm he has represented the school for the last five years.

Allen, the education director, said that despite recent events she is confident the church will find a solution to its financial problems, adding that the fact the church avoided auction is a sign Massey is taking the right steps.

"My faith allows me to believe that if God brought us this far, he isn't going to leave us now," she said.