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