January 19, 2010
Recently, a friend and small business owner asked me: “At what point should someone start considering Bankruptcy?” This is a difficult question to answer, and it varies greatly depending on the situation. Nevertheless, as one of the Arizona bankruptcy judges – Judge Case – has stated, “Fundamentally, bankruptcy is a matter of timing.” So, it is important to establish your timeline as you are feeling overwhelmed by debt.
Bankruptcy is a major step to take, and for most people it has never crossed their mind as an option. As a result, most people are unfamiliar with what Bankruptcy even really is; let alone whether or not they should consider it. The current economic conditions have put many people in this rather foreign territory.
As I explained to my friend, there is no general rule about when one should consider filing or when they should in fact file. However, there are several common circumstances that, taken together, can provide a litmus test as to whether you should seriously consider Bankruptcy.
January 12, 2010
Lawyers often get stereotyped as unethical, greedy, or arrogant. Just think of all the Lawyer jokes you've heard. But, there is one profession that may have an equally bad rap – used car salesmen.
Admittedly, some of the reasons behind both of the above stereotypes are legitimate. However, while I started my firm with the goal to change minds about lawyers, today I’m also going to compliment at least one member of the used-car sales profession. His name is Cameron, and I bought my first car from him over a decade ago. Cameron worked at a tiny, rundown, roadside car lot with about 15 vehicles. I’m sure he barely made enough to support his family. Yet, he was friendly, helpful, interested in his potential customers, and never pushy. He had a reputation that was passed by word of mouth around my college, and whenever someone mentioned needing to purchase a car, frequently the conversation would end with: “Go see Cameron, he’ll take good care of you.”
July 17, 2009
Many individuals facing potential Bankruptcy are small business owners. They may be the only or one of a few shareholders of an S-Corporation or only member of a Limited Liability Company. This complicates the nature of the Bankruptcy estate and limits what can be accomplished in the discharge.
Generally speaking, a small business that is incorporated under state law is its own legal entity, separate from the actual people that own it. However, in a Bankruptcy, the Trustee takes control of the Debtor’s assets and property as if they were the true owner. They can do with those assets anything that a typical owner of property can do. The debtor’s ownership of an LLC or small corporation is an asset of which the Trustee may take possession. If the business has significant assets, inventory or accounts receivable, the Trustee may find a way to assert control of these, and in some cases, dissolve the business.
June 15, 2009
If you have ever been behind on your bills, you have no doubt experienced the collection call. If you have ever been really far behind in your bills, these calls are a regular part of daily life…sometimes too regular.
In addition to their frequency, collection calls have quite an unsavory reputation for content. In many ways, this reputation is well deserved. In these difficult times collection agencies are being particularly aggressive in pursuing debtors. After all, they are usually paid according to what payments they bring in.
How would you like to turn the tables on those abusive debt collectors, and make them pay you instead of you paying them? Debt collectors are strictly regulated in how, when and with what they can contact debtors. Unfortunately, violations of those regulations are rarely pursued because many debtors do not know their rights. But, finish reading this post and you will learn a little about the FDCPA.
June 1, 2009
Filing bankruptcy is a complicated process. In fact, it’s complicated before you even start because you have to make some initial decisions about whom will represent you. Here are your four options:
1. Represent Yourself
As in most legal proceedings, a party is entitled to represent his own interests in a bankruptcy. This is called pro se or pro per representation. Some people are successful in doing a bankruptcy this way if they do not have a complicated case and if they have the time and ability to research the law and procedure for bankruptcy. However, even in a successful pro se case, the debtor often misses subtle items that could ultimately cost them more time and money than they would have spent on a lawyer. And, if the case begins to unravel, you will end up seeking out a lawyer and probably paying more than you would have if you had started out with a lawyer in the first place.
Pros: Low initial cost (just the $299 filing fee), learn about legal system, sense of accomplishment
Cons: Risk, potential high long term costs, anxiety of not knowing the process
