Watch the news long enough and you will see that corporations and people that were once worth billions can end up filing for bankruptcy. Sometimes these situations come at these folks fast too. While it's tempting to just watch the well-heeled suffer as the average Joe does, there are some valuable lessons you can learn from billion-dollar bankruptcies.
Bankruptcy Isn't a Financial or Social Death Sentence
Many tycoons have come back after bankruptcy. Nolan Bushnell's companies did it twice, and he has since found his way back to wealth.
Heck, several U.S. presidents filed for bankruptcy long before they took the highest office in the land. Before you assume they must have been the bad ones, remember that Abe Lincoln was one of them. He had started a store with a friend. The business ended up with significant debts leading to suits from creditors and a 17-year repayment plan because the 1800s were tough on bankrupt folks.
There's No Shame in Doing What's Financially Right for You
Asking for bankruptcy attorney services isn't a black mark on your soul. It is your right to petition the court for relief if you think you qualify. The system wants an eligible person to hire a bankruptcy lawyer and get their debts under control. America is about second chances, but you may need bankruptcy to retire the debts from your first chance before you can move forward. If it's the right thing for a multinational corporation to do, then take no shame when you do the right thing too.
Stop Digging a Hole
Working with a bankruptcy attorney is about figuring out how to stop digging a hole. Especially if you're facing mounting interest payments and fees on existing debt, it may not be as simple as just not taking on more debt and watching your spending. Some situations call for bigger solutions, and bankruptcy is one of them.
For example, a corporation might need to trim their debts down so they can keep paying them. There's a bankruptcy chapter for that. It's Chapter 11, and if your company qualifies, it may allow you to restructure your debts at lower totals so you can pay them off. An individual would do Chapter 13, but the idea is similar.
There is also the scenario where the hole you're in needs to go away. For that, a bankruptcy attorney may point you to Chapter 7. If the court grants relief, a trustee will sell your non-essential assets and whatever money is made goes to the creditors before the remaining debts are discharged.
Talk to a bankruptcy lawyer for more information.