Bankruptcy

Don't Try to Confuse Me with the Facts!

By Joseph McDaniel, Esq.

And, wouldn't you know it, they're all people.

Now, I don't have a big problem with people, regardless of what that guidance counselor wrote in the file about me, and she was just crazy, you know?

But trustees, being people, differ in their approaches to cases very, very greatly. I hate that whole "people are all individuals and see things many different ways" thing, don't you?

In some cases, a trustee will quickly abandon a corporation's stock owned by the estate once it's clear that the debt in the corporation is much greater than the value of all the assets (often by an order of magnitude).

And especially if the debtors are maintaining the business inside the corporation (say, a sign painting business) by the simple technique of not taking any payment for their fifty hour workweeks.

Others say, in effect, "I understand the "argument" that the corporation has worthless stock because the bank is owed ten million and the dirt is worth one million.

But the business MUST have value if the debtors are still working at it!

So make me an offer!"

Well, I'm the world's easiest guy (see the Guinness Book of World's Records), and I'll always do what I'm told to do.

And generally, in those sorts of cases, the debtors are ready to walk away anyway, because working hard and not getting more than beanie-weanie money gets old soon, even if the debtors are glass half-full kinda people.

So when I make offers in flat puppy cases, they're generally generous, because I'm giving away my client's money anyway. And beside, any positive offer is generous when the business consistently loses money and has negative equity, you know?

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on June 04, 2010 (boomark / email).