Business and Bankruptcy

It seems as if litigation is booming on collection matters. I have several collection matters pending and each of them has one thing in common: one party doesn't have money. This probably doesn't come as a surprise in this economic climate. The question I am constantly faced with is whether bankruptcy is the best way out. There is no simple answer. Ultimately it depends on whether you are willing to lose control over your assets, as the bankruptcy court will assert control over them. Also, it depends on whether you plan on continuing to operate your business, which is important for people that have developed a business brand name.

I try to discuss the bankruptcy option with my client as early as possible in the case, once I am advised by the client that the amount sought is substantial considering their financial position. I have relationships with bankruptcy attorneys and involve them in the case once it becomes clear that it may be a better alternative for my client than litigation. Each case differs. Bankruptcy is not for everyone.

If you are being sued, discuss the bankruptcy option with your attorney. If you have any questions, please do not hesitate to contact me via www.voneschlaw.com. I practice business
and real estate law.