Business Bankruptcy: How A Lawyer Can Ruin Your Troubled Business

There is a padlock on the delivery gate. Most of thethey discover, only too late, that going to an attorney
manufactured pre-cast products formerly stored onto file business bankruptcy only makes their situation
pallets in the back lot are gone. The building has a hugeworse. Janelle made the fatal mistake of using a
"For Lease" sign attached to the front. Janelle, thecheap attorney. When the lawyer looked at her, he did
former owner, drives by in a Rent-a-Lemon car. Shenot see a businesswoman in need of sound advice,
had registered both her automobile and delivery truckbut an expense paid trip to the Orient.
in the name of her business; and, like everything elseTo make matters worse, this attorney didn't even
she had worked for years to build up, they are gone.specialize in bankruptcy proceedings. Therefore, he
How did it all happen? She had run this businesscouldn't prepare her for what could happen to her and
successfully for over twenty years. When eventsher business. The incompetence of her bankruptcy
turned sour, everything happened at once. First, alawyer left her with no legal alternative when the
powerful and wealthy client sued her for nearly abankruptcy trustee decided it was time to liquidate her
half-million dollars. Then, other clients, sensing thebusiness.
distress, started using one of her competitors. HerAn honest bankruptcy attorney would have explained
financial problems soon followed. Eventually shethe process and given Janelle other options. Why?
couldn't make payroll, so she decided to file businessBusiness bankruptcy is not usually the best choice for
bankruptcy.small businesses. Most do not survive and eventually
Unfortunately Janelle didn't do her homework. Insteadmust liquidate their assets. The process is expensive
of seeking out an experienced bankruptcy attorney,costing anywhere from $50,000 on up. Your company
she used a small law firm that she knew aboutmust have at least that much in the bank to emerge
through a friend of a friend. Her selection ofsuccessfully.
representation was bargain-basement. She neverAs with any other large investment, Janelle should
went to the website of the state bar association. Onlyhave shopped around for an attorney. If she decided
later would she discover that her attorney had histhat bankruptcy was right for her business, she should
license suspended not once, but twice in recent years.have interviewed several lawyers. A bankruptcy can
Doing a Reality Checktake up to five years to complete. This means you
In this case, Janelle suffered from a sense ofshould plan to have a long-term relationship with your
invincibility. Clients had threatened lawsuits before andbankruptcy attorney. Make sure you trust this person
she had successfully handled them through mediation.and have good communication with him or her.
This time, however, it was different. At the first sign ofJanelle's is a classic case of doing too little, too late.
trouble, she should have done a serious reality check.Her story didn't have to end this way. When your
When everything first started, she just had a troubledbusiness gets into trouble, make sure you explore all
business. After she let it linger, it turned into a liquidationyour options. Find out what it takes to turnaround your
business bankruptcy with the loss of the personalbusiness or simply shut the doors before deciding that
property securing her business loans.business bankruptcy is right for you. While filing
Business Bankruptcy: Know What You Are GettingChapter 11 can save some businesses, going into the
Intoprocess unprepared and with the wrong lawyer can
Small business owners across the country turn todestroy it.
business bankruptcy when they get into trouble. Often