After Filing Chapter 11 Bankruptcy In 2005, Books Inc. Creates Fresh Start
Two years after seeking bankruptcy protection under Chapter 11, Books Inc. is once again profitable and growing. The nation’s oldest independent bookseller now has 11 locations in California, has paid off all former creditors, and is in the process of launching a new e-book project with Ingram Book Company. The 155-year old bookseller says it will make a profit of $24 million this year.
Allbusiness.com offers the following insights on what to focus on to make your Chapter 11 bankruptcy reorganization as successful as possible:
1) Keep your investors informed regarding what is going on.
2) Identify what your company does well and build around them.
3) Discontinue, outsource, or sell whatever doesn’t work well.
4) Take immediate and decisive action rather than spending a lot of time debating as to what to do to save your company.
5) Slash overhead.
6) Aggressively pursue accounts receivable.
7) Renegotiate any accounts payable.
8) Consider bringing in new executives with fresh ideas about rebuilding.
9) Seek funding if necessary.
10) Make the necessary improvements to turn the company’s future around.
11) Be receptive to complaints and comments from employees.
12) Communicate with employees, customers, and suppliers.
Allbusiness.com also offers a number of suggestions for finding a good bankruptcy lawyer, including:
1. Don't procrastinate. Start your search process right away.
2. Spend a day at bankruptcy court. Observing bankruptcy attorneys in action might give you an idea of the type of lawyer you want representing you.
3. Visit law offices. An office appraisal can give you vital clues as to how a lawyer would handle your case.
4. Ask lots of questions. Once you have some candidates in mind, ask them the following questions:
§ What certifications do you have?
§ How many bankruptcies have you handled?
§ How many do you handle in a month or year?
§ Of those, how many are business filings?
§ How much access will I have to you during my filing?
§ If I'm not working directly with you, who will I be working with?
§ Can I interview the person with whom I would be working?
§ What time frame do you have for this bankruptcy?
§ How will the procedure work?
5. Evaluate the responses thoroughly. As mentioned, bankruptcy law can be a volume business, which means the time you'll actually spend with a specific attorney might be minimal compared to what you spend with a clerk or a paralegal. This is yet another reason to conduct a thorough interview process and to carefully evaluate the responses.
6. Don't hire the cheapest lawyer. Obviously, in this circumstance you don't have a lot of cash to spare. But like most things in life, you get what you pay for. You want a lawyer who knows the system and who will do the best job of representing you. That may end up costing a little more.
7. Get fee specifics. Find out exactly what's included in your lawyer's fees and what isn't.
8. Stay involved.
Sagaria Law, P.C. handles bankruptcy cases in Monterey County, Alameda County, and Santa Clara County. We offer all prospective clients a free consultation to allow you the opportunity to get to know us and make sure that we are the right legal fit for you. If you are filing for bankruptcy or have any other bankruptcy-related matters where you need the services or advice of an attorney, contact Sagaria Law, P.C. today.
Books Inc.: Bookstores Turn Page On Bankruptcy, MSNBC.com, November 19, 2006
Bounce Back From U.S. Bankruptcy, Allbusiness.com
Ten Tips On Choosing A Bankruptcy Lawyer, Allbusiness.com
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