Monthly Archives: December 2014

Going Bankrupt “Saving” Your Business

You would think a guy making $6 million per year would foreclosureANDbankruptcy

be safe from filing bankruptcy.

And he would have been, but:

Altorelli, 57, filed for bankruptcy on Nov. 25, the New York Times reports. A rainmaker at Dewey, he earned $6 million in 2011. But he gave up most of his compensation in 2012 in “valiant efforts to save the firm,” according to the Times.

. . . .

The Times also sees other reasons for Altorelli’s financial troubles. “Mr. Altorelli, the proverbial grasshopper in Aesop’s fable, didn’t exactly save for a rainy day,” the story says. “The very qualities that made him such an effective rainmaker — generosity, gregariousness, his tireless socializing — contributed to his current predicament.”

But, c’mong, man.  You can do quite a bit of partying on 6 mil a year and still save something.

Bur Mr. Altorelli has filed bankruptcy.

I see lots of people who have careers, keep their job, and put dollar after wasted dollar into their business.

Many do this year after year, with the business NEVER making money.

I represented one couple who both had good paying jobs.

They started a laundromat business.

Bought one location, set up another later.

Took out a second mortgage.  Sank their savings.

When they finally came to me, years after first having bankruptcy suggested to them, neither location had ever made a cent, though they had been open for years.

Their savings were gone, and they were about to lose their house.  Creditors were suing.

What did they want to do?  File bankruptcy?  No!

Stay open!!!

The Constitution states that Congress shall establish uniform laws of bankruptcy.  If you need to, use it.

Bankruptcy is, and should be, a last resort.

But, filing bankruptcy works. Whereas, wiping out your savings and losing your home because you are in denial that you never should have gone into business, does NOT work.

They found that the bankruptcy code is an incredibly effective social insurance policy. According to their findings, getting approved for Chapter 13 bankruptcy protection “increases annual earnings by $5,562, decreases five-year mortality by 1.2 percentage points, and decreases five-year foreclosure rates by 19.1 percentage points.”

(from the Fortune article linked to above)

Check with an expert bankruptcy attorney before you lose everything.

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Relief From Big Bank Debt Harassment?

BANKdebtHARASSMENT

The Fair Debt Collection Practices Act applies to third party debt   collectors, that is, NOT the holder/owner of the debt, unless the debt buyer acquired the debt AFTER it was in default. The times, they are a changin’. The FDCPA is great, but, the debt harassment abuses it covers are legal if done byContinue Reading