Alternative ways to resolve a conflict


Business Bankruptcy: How A Lawyer Can Ruin Your Troubled Business

There is a padlock on the delivery gate.Small business owners across the country turn
Most of the manufactured pre-cast productsto business bankruptcy when they get into
formerly stored on pallets in the back lottrouble. Often they discover, only too late,
are gone. The building has a huge "Forthat 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-LemonJanelle made the fatal mistake of using a
car. She had registered both her automobilecheap attorney. When the lawyer looked at
and delivery truck in the name of herher, he did not see a businesswoman in need
business; and, like everything else she hadof 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 thisTo make matters worse, this attorney didn't
business successfully for over twenty years.even specialize in bankruptcy proceedings.
When events turned sour, everything happenedTherefore, he couldn't prepare her for what
at once. First, a powerful and wealthycould happen to her and her business. The
client sued her for nearly a half-millionincompetence of her bankruptcy lawyer left
dollars. Then, other clients, sensing theher with no legal alternative when the
distress, started using one of herbankruptcy trustee decided it was time to
competitors. Her financial problems soonliquidate  her  business.
followed. Eventually she couldn't make
payroll, so she decided to file businessAn 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 experiencedMost do not survive and eventually must
bankruptcy attorney, she used a small lawliquidate their assets. The process is
firm that she knew about through a friend ofexpensive costing anywhere from $50,000 on
a friend. Her selection of representationup. Your company must have at least that
was bargain-basement. She never went to themuch  in  the  bank  to  emerge successfully.
website of the state bar association. Only
later would she discover that her attorneyAs with any other large investment, Janelle
had his license suspended not once, but twiceshould 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  Checkseveral lawyers. A bankruptcy can take up to
five years to complete. This means you
In this case, Janelle suffered from a senseshould plan to have a long-term relationship
of invincibility. Clients had threatenedwith your bankruptcy attorney. Make sure you
lawsuits before and she had successfullytrust 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 seriousJanelle's is a classic case of doing too
reality check. When everything firstlittle, 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 atrouble, make sure you explore all your
liquidation business bankruptcy with the lossoptions. Find out what it takes to
of the personal property securing herturnaround 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 AreChapter 11 can save some businesses, going
Getting  Intointo the process unprepared and with the
wrong lawyer can destroy it.



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