| There is a padlock on the delivery gate. | | | | Small business owners across the country turn |
| Most of the manufactured pre-cast products | | | | to business bankruptcy when they get into |
| formerly stored on pallets in the back lot | | | | trouble. Often they discover, only too late, |
| are gone. The building has a huge "For | | | | that going to an attorney to file business |
| Lease" sign attached to the front. Janelle, | | | | bankruptcy only makes their situation worse. |
| the former owner, drives by in a Rent-a-Lemon | | | | Janelle made the fatal mistake of using a |
| car. She had registered both her automobile | | | | cheap attorney. When the lawyer looked at |
| and delivery truck in the name of her | | | | her, he did not see a businesswoman in need |
| business; and, like everything else she had | | | | of sound advice, but an expense paid trip to |
| worked for years to build up, they are gone. | | | | the Orient. |
| | | | |
| How did it all happen? She had run this | | | | To make matters worse, this attorney didn't |
| business successfully for over twenty years. | | | | even specialize in bankruptcy proceedings. |
| When events turned sour, everything happened | | | | Therefore, he couldn't prepare her for what |
| at once. First, a powerful and wealthy | | | | could happen to her and her business. The |
| client sued her for nearly a half-million | | | | incompetence of her bankruptcy lawyer left |
| dollars. Then, other clients, sensing the | | | | her with no legal alternative when the |
| distress, started using one of her | | | | bankruptcy trustee decided it was time to |
| competitors. Her financial problems soon | | | | liquidate her business. |
| followed. Eventually she couldn't make | | | | |
| payroll, so she decided to file business | | | | An honest bankruptcy attorney would have |
| bankruptcy. | | | | explained the process and given Janelle other |
| | | | options. Why? Business bankruptcy is not |
| Unfortunately Janelle didn't do her homework. | | | | usually the best choice for small businesses. |
| Instead of seeking out an experienced | | | | Most do not survive and eventually must |
| bankruptcy attorney, she used a small law | | | | liquidate their assets. The process is |
| firm that she knew about through a friend of | | | | expensive costing anywhere from $50,000 on |
| a friend. Her selection of representation | | | | up. Your company must have at least that |
| was bargain-basement. She never went to the | | | | much in the bank to emerge successfully. |
| website of the state bar association. Only | | | | |
| later would she discover that her attorney | | | | As with any other large investment, Janelle |
| had his license suspended not once, but twice | | | | should have shopped around for an attorney. |
| in recent years. | | | | If she decided that bankruptcy was right for |
| | | | her business, she should have interviewed |
| Doing a Reality Check | | | | several lawyers. A bankruptcy can take up to |
| | | | five years to complete. This means you |
| In this case, Janelle suffered from a sense | | | | should plan to have a long-term relationship |
| of invincibility. Clients had threatened | | | | with your bankruptcy attorney. Make sure you |
| lawsuits before and she had successfully | | | | trust this person and have good communication |
| handled them through mediation. This time, | | | | with him or her. |
| however, it was different. At the first sign | | | | |
| of trouble, she should have done a serious | | | | Janelle's is a classic case of doing too |
| reality check. When everything first | | | | little, too late. Her story didn't have to |
| started, she just had a troubled business. | | | | end this way. When your business gets into |
| After she let it linger, it turned into a | | | | trouble, make sure you explore all your |
| liquidation business bankruptcy with the loss | | | | options. Find out what it takes to |
| of the personal property securing her | | | | turnaround your business or simply shut the |
| business loans. | | | | doors before deciding that business |
| | | | bankruptcy is right for you. While filing |
| Business Bankruptcy: Know What You Are | | | | Chapter 11 can save some businesses, going |
| Getting Into | | | | into the process unprepared and with the |
| | | | wrong lawyer can destroy it. |