Bankruptcy Indiana

I always try to keep my small business bankruptcy clients up on the latest bankruptcy information in Indiana.  The other day, one of the Indianapolis bankruptcy lawyers who works with me in the Zuckerberg bankruptcy law offices called my attention to a really interesting legal case in the state of Delaware.

The story revolves around the fact that often, in big corporations, bankruptcy (CreditSlips.com calls it the "B" word) is a word no one wants to discuss.  The fear is that even the possibility of a bankruptcy would "spook" suppliers and investors, so that they wouldn't want to do business with the company or buy its stock. Board members are often in denial about the financial distress the company is experiencing.

Of course, as a debt consolidation lawyer offering help filing personal bankruptcy in Indiana, I see exactly the same "ostrich" syndrome when it comes to individual bankruptcy in Indiana.  Rather than dealing assertively with financial problems before they become worse, too many people wait until it's too late for all the options to be available.

In the Delaware case, the board of DSL.net company voted to incur additional debt rather than file bankruptcy. That board decision was contested by some minority shareholders.  As a longtime bankruptcy attorney in Indiana, I can understand why those shareholders were not happy - the new debt the corporation took on included convertible notes that would give the lender a 90% ownership stake in the company, which would in turn allow that lender to force a merger.

Interestingly, the court ruled in favor of the board.  The concept was that board members are allowed to exercise their own best business judgment in making decisions about the corporation.

Now, my bankruptcy practice offers only Indiana bankruptcy help, and I do not handle large corporate cases like DSL.net.  However, I do handle small business bankruptcy in Indiana.  The lesson to be learned from the DSL.net affair, I believe, is that the "B" word may stand for "best". Not always is bankruptcy the best or only solution to financial problems, but neither should it be thought of as a last resort.

"B" can stand for "buy".  Bankruptcy in Indiana often buys time for a business to work out - and work through - a plan to stay afloat!