Alternative ways to resolve a conflict


Business Bankruptcy: How A Lawyer Can Ruin Your Troubled Business

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



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