"If the a giver of advice is also going to profit from the advice, be skeptical. It may be true, but there is at least a 50% chance that it is not. Always get another INFORMED opinion. "
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It's All About Attitude


I got a call today from a prospective client for our firm referred by his banker.  To make a long story short he told me about his business (which to protect privacy I will not hint at in this blog) and his problems.  He felt that at the root of his difficulty was a receivable from a large client that is uncollected.  I asked what steps he was taking to collect it and the answer was that he has called but is not having his returned.

For the record, that is not taking steps to collect.  That is just fooling around.  So, understanding that, I asked if he had retained an attorney.  He said that he had but his advice was to file Chapter 13 Bankruptcy!  My mouth dropped open as so far nothing in his story remotely warranted liquidation, so I asked a few more questions.   How far behind was he on payables?  Answer: he is current!  Current!  Exactly how does an attorney advise BK when the bills are all paid?  Next, I asked if there were new jobs on the horizon?  Yes, but he went on to add that based upon the attorney’s advice he was turning away new business!  Hello, what in the hell is that?!

Okay, I of course pressed on and I am not going to waste the space with all of my questions and his answers but it became clear to me that this guy is not finished, just depressed and really, really hard on himself.  He needs a good dose of psychology, not bankruptcy.  He just had himself talked into feeling like a loser and then managed to find an attorney who, and I am being generous in saying this, does not know his rectum from a hole in the ground.  At least that is what I hope that idiotic advice was based upon rather than just wanting to grind this poor man for legal fees.

Look friends, things are often not near as desperate as they may seem to you.  You just need a little perspective but it is VERY important to know where to seek that advice.  Let me offer this; if the giver is also going to profit from the advice, be skeptical.  It may be true, but there is at least a 50% chance that it is not.  Always get another INFORMED opinion.  I highlight “informed” because by that I do not mean your mate, friend, or golfing buddy.  I mean someone who indeed does, by training and experience, know the difference between….oh well, you get the point.

Posted by Herb Kay on Wednesday, April 09, 2008

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