Have you ever found that an argument against something can turn out to be an argument for that very thing? Well, as an Indiana debt consolidation lawyer, I found that to be true about an article in Inside Indiana Business about alternatives to bankruptcy. In other words, while the author, Jeffrey Alan Hokanson was listing reasons why filing bankruptcy in Indiana is not a good idea, I feel he actually proves why it is!
“Chapter 11 can be a haven for a distressed company,” Hokanson begins. “Debts are stayed and managers are provided a respite to concentrate on strategic decisions for the business.” Well, after twenty-five years offering small business bankruptcy help in Indiana, I’d say that, from the point of view of a business owner, “haven” and “respite” would go on the positive side of the ledger!
One alternative to bankruptcy in Indiana that Hokanson discussed is called a composition agreement. When that works, he explains, all the creditors decide it’s in their best interest to work together (with no bankruptcy trustee to manage the process). As a longtime lawyer for bankruptcy in Indiana, I had to smile when Hokanson added that the difficulty with these composition arrangements is getting the cooperation of the different creditors. One of the Columbus bankruptcy lawyers in my office noticed that Hokanson himself referred to the process as “herding cats”.
In the process of filing small business bankruptcy in Indiana or personal bankruptcy in Indiana, by contrast, there’s no cat-herding for a debtor to do. The trustee, generally an attorney from the local community, works under the supervision of a U.S. Trustee connected with that region. (For example, I work within the Southern Indiana Bankruptcy District.). The process is usually very smooth, both in bankruptcy Chapter 7 in Indiana and in cases filed under Chapter 13 bankruptcy law.
The points Hokanson was making may be more relevant when a large business with many suppliers, employees, retirees, and vendors must cooperate. But for most of the clients we see in our Zuckerberg bankruptcy law offices, it's easier on debtors to use the bankruptcy process. The debtors deal with me; I and my colleagues deal with the trustee.
In cases where a small business bankruptcy in Indiana is related to personal bankruptcy in Indiana (we see a lot of those!), our clients often need help to stop foreclosure along with everything else. There, too, it's simpler for the clients to allow us to negotiate with their lenders on mortgage modifications.
Once your bankruptcy petition has been approved, the trustee will be managing and overseeing the process, doing whatever “herding” is needed. You, on the other hand, no longer need to deal with your creditors, who will be notified that you’ve filed personal bankruptcy in Indiana, (or that you, as a business owner, have filed small business bankruptcy in Indiana) and that they are to halt all collection efforts against you. Meanwhile, as Hokanson mentioned, you can concentrate on making strategic decisions for your business – or when it comes to your own finances, making a fresh start.
KISS – You want to keep things as simple as possible, and, (because you're not stupid), you don't want to be herding cats – you want to make a fresh financial start!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg