Archive for the 'Business Bankruptcy' Category


Doctors are just like you and me – broke

More and more doctors are finding it harder to keep their practices financially sound with some crumbling under cash problems and being pressed into bankruptcy. It’s a trend that’s multiplied recently.


Chapter 11 bankruptcy filings by physicians have increased recently, which was virtually unheard of for medical practices in the past.  And the bankruptcy trend is not coming from medical malpractice lawsuits as one may think. The weak economic times have killed some doctors’ revenue, as consumers cut back on trips to their physician and profitable optional procedures.

Doctors also blame reductions in insurance coverage expenses, changing rules, and the rising costs of negligence insurance coverage, medication and other company requirements for making it more complicated to keep their methods profitable.

As insurance payouts and other revenue streams have slowed, doctors’ fixed overhead remains the same or continues to increase, such as with insurance premiums.  So despite the fact that we think all doctors (and lawyers too!) and swimming in money, the continued poor economic times continue to affect all walks of life in unprecedented ways.

If you are in a financial bind, please contact us here or at 619-800-3082 to discuss your options.

The Zarcone Law Firm


time to end your start-up? try plan B first.

Your new start up doesn’t always go according to plan.  Some businesses are not consistent with revenues throughout the year.  Some end up focusing on the wrong market.  Some underestimate the competition. 

If you can afford to stay around for a little while longer, and Plan A isn’t working, go to Plan B, or even Plan C.  Like a doctor tending to a patient, an owner has to quickly identify what’s obstructing the business and come up with a solution that will get the business into the black.

So what can a start up do?  According to business coach, Devon Attenbaumer, the first thing a business can do is look at its pricing.  It can be a fairly easy fix.  Is the business charging too little or even too much for its services or goods?   The business may be offering a service such as photography at a price that is too low and doesn’t generate enough revenue to cover costs.  Take it upscale and offer more than your competitors but charge a premium for the upscale service.

The point being that if the current model isn’t working, the business has to quickly move on to a plan that will work if it is to survive.

Once the bills and creditor claims start adding up, then it is time for Plan D, which would include filing for bankruptcy.


Some big names that went under in 2010

The recession creeps on and it was a tough year for some iconic brands.

A&P – East Coast grocery chain.

Affiliated Media – Newspaper publisher including the San Jose Mercury News, which I grew up reading.

Ambac – Insurer of toxic mortgage backed securities.  Maybe Ambac should have read Michael Lewis’ “The Big Short”.

American Media – Publisher of the National Enquirer among others.  Wait, Angelina Jolie, Brad Pitt and Jennifer Aniston didn’t sell magazines like they used to?  I didn’t think that story could get tired.

Blockbuster – What’s Blockbuster?  I seem to remember it having something to do with renting VHS movies.

Hummer – Giant SUV’s.

MGM – Movie studio.  Doesn’t it seem like MGM is always filing for bankruptcy, about to file for bankruptcy, should file for bankruptcy?  Well, it did.

Mercury – Part of the Ford family of cars whose most memorable model was the……………..?

Movie Gallery – Ran Hollywood Video.  See Blockbuster.

Newsweek – News magazine.  People don’t read anymore.  Well, except this blog.

Pontiac – GM car division.  It had more memorable cars than Mercury at least.

So the story would appear to be that it was a bad year for cars, print media, and movies.   Looking forward to 2011.


Small Business Filing for Bankruptcy? Don’t Forget the Small Stuff.

Times are tough, your small business has fallen behind on bills, and creditors are filing suit.  You make the decision to file for bankruptcy and liquidate the business.  When listing the assets of the company, don’t forget the small stuff.

Your company name, web address, phone number and other intangibles may have value and should be listed as an asset.

Chances are unless your Microsoft or Home Depot these items are not going to have much value and it’s not going to be worth the trustee’s time to try to sell them.  Nevertheless, in my personal experience I have run across creditors who were interested in purchasing the phone number and company name.  So for practitioners and debtors alike, be sure to keep in mind the small stuff when listing assets.

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The content found on the financialfreshstart Blog is not legal advice and is purely for informational purposes. The Zarcone Law Firm does not guarantee the accuracy, integrity or quality of submissions. The information provided by the bloggers on this site may not represent the opinions of the Zarcone Law Firm or its affiliates. The information contained herein is not a substitute for the advice of an attorney.

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