My business is bankruptcy. I cut my baby lawyer teeth in the bankruptcy court as a law clerk to a bankruptcy judge. I moved directly from chambers into a law firm where you either are a bankruptcy lawyer, or you become one. As I approach 20 years in bankruptcy, one thing I know from my experiences is that almost no one is happy to be in bankruptcy – maybe the lawyers, but certainly not the creditors and definitely not the debtors. It can be a painful, humbling, slow, and frustrating experience no matter which side of the case you are on. The same can be said of other similar endings for distressed business – assignments, liquidations, windups – there is never enough money to pay every outstretched hand, there is never a good enough explanation to creditors for where the money went (even when the business was run well). Moreover, the owners often walk away with no business interest or income but carrying a box full of personally guaranteed business debts that were not satisfied. Fair or not, everyone takes a hit.
In big and small ways, I have been on the unwitting receiving end of a business’s bankruptcy fallout. My first experience was as a young adult when over the course of many months, I had accumulated gift cards to a music store, Mars Music, with which I had hoped to purchase my first ever music lessons and supplies. I purchased some gift cards myself, as a way to save money specifically for this goal, and asked for gift cards from others for my birthday. On my birthday, I received enough gift cards to finally purchase the supplies I needed along with a first set of music lessons. But the following week, before I could buy anything, the store’s closure and bankruptcy was announced, and immediately all of my gift cards were unusable. All of that money just evaporated overnight. For me, it was a lot of money at the time and emotionally pretty devastating.
I’ve had other personal brushes with business’s bankruptcies – my solar panel manufacturer and servicer filed for bankruptcy almost as soon as they finished the installation on my house, wiping out all warranties and the ongoing services that were “included;” and my favorite fabric and craft store is gone and can never really be replaced. In fact, I still get sad driving by the fabric store’s former locations, leading my children at times to pat my arm and express condolences for my loss, as if the store was a loved one. All of which is to say, while I understand the bankruptcy process and its utility, I have felt the pain and unfairness of the procedure on deeply personal levels and in my own wallet.
My personal experience informs how I practice in the bankruptcy world. When I am representing the closing business or the business debtor, I have a lot of empathy not only for my clients, but also for creditors who are legitimately upset over their own money lost. For my debtor clients, I see it as my role not only to guide them in the legal mechanics, but to understand what they may be facing personally and emotionally, and appropriately counsel them with clear directives and realistic expectations.
On the creditor side, I am often not able to provide them with much comfort in terms of recoveries or timelines, but I can offer a sympathetic ear, a warm tone, and assurances that this was indeed an unhappy last resort for the business owners who are doing everything they can to make things right for as many folks as possible. But as I told a creditor who called me this week – you can’t pay a $100 check with a $10 bill. There is simply never an ability to make everyone whole. That’s one of the limitations, but even with that, and my own unpleasant personal experiences on the creditor side, I believe the process is overall a good one at bringing closure and finality to debtors and creditors alike.
Good bankruptcy work isn’t just technical, it’s about supporting people through an incredibly difficult moment. A good lawyer understands the legal underpinnings of bankruptcy and how to obtain relief, but a better lawyer will understand the emotional toll that the proceedings will have on a debtor’s principals as well their creditors and provide nuanced and empathetic guidance and representation with that understanding. That’s the standard I hold myself to and that is my goal in every interaction – compassion, empathy, and understanding – both with my clients and with their creditors.
Bankruptcy will never feel fair or painless, and it rarely leaves anyone whole. But when handled thoughtfully, it does provide structure, clarity, and an end point for people who desperately need one. After seeing the impact of financial collapse from both the personal and professional sides, I believe the role of counsel is not only to navigate the law but to guide the people living through it. My goal is to offer clients and creditors a process grounded in honesty, steadiness, and compassion so that, even in a difficult moment, they feel understood and supported as they move toward closure. If you or your business are facing financial challenges and need guidance on what comes next, we’re here to help you navigate your options with clarity and care.