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Yes, I Can Still Be Surprised. Using a Docu-prep for a Business Bankruptcy Filing in Arizona. A $20 Million Filing.

By Joseph McDaniel, Esq.

Let's say you were from somewhere else. Not from around here. Maybe Eastern Europe. Maybe Antarctica.

But you work really hard, and develop good credit. And become able to obtain financing for a business.

We'll pretend that the business is a plutonium resin manufacturing plant worth $10,000,000, and you obtain a loan to purchase that business, even though you aren't from around here and you do not speak English very well at all.

And then things fall apart in the economy, and people start buying only half the plutonium resin that they used to buy for consumer purposes, because it's a depression!

And the bank sends in a squad of crack lawyers to get a receiver appointed to run the business while they're working out the details of the lawsuit, trustee's sale, and garnishments.

So you wait around for a long time, and it finally looks to your unsophisticated eyes as though you need to file a bankruptcy for the twenty million you owe the multiple banks (did I mention the other business?).

And since you weren't from around here, you used a docu-prep service to help you prepare schedules to file.

And your case either was or wasn't promptly dismissed. Maybe.

So you then go to track down the lawyer with the most bankruptcy credentials in Phoenix that you can get to talk to you on fairly short notice.

Okay, I found a way to stabilize the case, and get it into the right pew (can there be a correct pew for a case with somebody with $20,000,000 in debt, a receivership or two, two dead businesses, no particular command of the language, and a case which was filed in the first instance by a bankruptcy docu-prep agency, covering both businesses?).

Well, I have a pretty good Rolodex after thirty years of bankruptcy practice in Phoenix.

No guarantees, but I think he'll do okay now (and yes, I have a very careful definition of the word "okay").

But a complex business bankruptcy by a bankruptcy docu-prep? For $20,000,000 in debt and half that in assets?

Well. He wasn't from around here, after all.

p.s. as frequent readers know, he wasn't really from Antarctica. And the business wasn't really plutonium resin manufacturing. And the debt wasn't exactly $20,000,000.

But it was still a complex multi-million dollar debt and assets multi-business matter, filed by a bankruptcy docu-prep.

So you know, he really wasn't from around here.

.

Full post as published by Arizona Bankruptcy Attorney Blog on October 21, 2010 (boomark / email).