Tips From the Trenches: Vol. 2
Article: STOP! Change in Reality for the Big B, Bankruptcy
Dear Valued Client,
I hope these brief Tips From the Trenches prove valuable. If there is a topic that interests you, please let me know. Thank you for the opportunity to assist you.
Jeanette Bowers Weaver, JD, MBA
Bowers Foreman, PLLC
STOP! Change in Reality for the Big B, Bankruptcy
Bankruptcy. Business owners dread the thought of the Big B. But, many have always considered bankruptcy the necessary evil if their business goes to hell. Now, my bankruptcy colleagues tell me they are more frequently advising against bankruptcy than ever before.
Why? Bankruptcy trustees (those who swear an oath to maximizing the funds from sale of all a bankrupt’s assets) are now far more aggressive than in the past. The trustees now go so far as attempting to market property of the debtor where there is no equity for the estate, by trying to negotiate “short sales” with lenders.
Also, the internet now makes a bankrupt person’s private information very public –including the last 4 digits of one’s social security numbers. This can make a person in bankruptcy a target for identity theft. Thieves can often predict your social security number fairly accurately if they have the last 4 digits of your SSN because the first 5 digits are standardized based on the year and place where you lived at the time of issuance. For more check out: http://www.youtube.com/watch?v=PWJMMIwjWYE
If business owners are nervous about their financial situation, it is very important to seek the advice of a business attorney as early as possible.
Creative business attorneys can:
- Brainstorm unusual strategies to divest of a business in such a way as to minimize losses and avoid bankruptcy; and
- Connect struggling business owners with banking consultants, work-out artists, and marketing specialists, i.e. thereby forming a team that may be help owners out of a rough patch.