No One Can Borrow Your Way Out Of Debt

You’d think some people, say, partners at big kickDEBTdownTHEroadlaw firms, would know this.  That paying this year’s bills with next year’s income just kicks the can down the road.  At best.

At, worst, you pile up more debt instead of filing bankruptcy when you are broke.

Well, the news is full of a BIG law firm that is in BIG trouble for doing just that.

OK, they did more, too, and the law firm, which did up to a billion, yes, billion dollars a year of business, ended up bankrupt anyway:

all of whom are lawyers, painted a picture of a well-orchestrated campaign to mask Dewey’s failing finances from banks and insurers that either lent the firm money or invested in a $150 million bond offering.

but if you steal in the tens, made that hundreds, of millions, the company ends up bankrupt:

they lied to lenders and investors, stealing nearly $200 million from insurers and banks, prosecutors said in opening statements at their Manhattan state court trial.

Some of the lawyers who worked at the big firm are also filing bankruptcy:

Despite all these trappings of success, Mr. Altorelli, who is 57, filed for personal bankruptcy protection on Nov. 25 in Connecticut, where he owns a sprawling home currently on the market for $3.9 million.

In a cautionary tale for any firm that may be contemplating a bankruptcy filing, the trustee overseeing Dewey & LeBoeuf’s bankruptcy is suing him for $12.9 million. He’s surrounded by lawyers and is personally responsible for his legal fees. He’s been grilled by prosecutors and cited as a potential witness in the pending criminal trial against Dewey & LeBoeuf’s former leaders. The Internal Revenue Service is on his back.

“Filing for bankruptcy is the worst possible outcome,” Mr. Altorelli said when I reached him this week. “It’s hard to imagine that 20 years of effort could be wiped out in this fashion.”

I have seen all these things on a smaller scale.

The Wall Street Journal reports that the firm was paying this year’s bills with next year’s income.

Some of the charges involve lying about that, showing loans back to the firm as revenue/income, and, of course, lying to the banks about their financial situation.

Individuals do these things to.  DON’T!!!

When you are short of money to pay the monthly bills, stop borrowing, and contact a bankruptcy lawyer.

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