"Bankruptcy with a Small Business" 

Life After Bankruptcy Stories

Yes, there is life after bankruptcy.

And even though it can be painful, when all is said and done, you are not only much wiser, but much richer because you are grateful for what is truly important – the love and support of family and friends. 




I watched my brother and his family make the difficult decision to declare bankruptcy last year. With a floundering small business in a decaying part Cleveland, he did everything he could for the past three years to keep the business afloat for his family and employees. As the economy worsened, he trimmed expenses, cut staff, took only a minimal salary and suggested his wife find a part-time job.

It was not enough. They got behind on their mortgage payments, the credit cards were maxed out and they realized they were in big trouble.

My husband and I offered to help, and we did what we could, but when his suppliers cut him off and the banks called in loans, he realized that he had no choice but to declare bankruptcy.

He often joked that he was in good company: former Cleveland Brown quarterback Bernie Kosar was also in bankruptcy proceedings in Florida.

My brother contacted an attorney for legal advice and found that even though he could file papers himself, it really was better to hire a lawyer. Many firms charge a flat fee and work out payment plans.

They can also protect you from being harassed by creditors and will fill out all the forms and paperwork and represent you in any court proceedings. It is easy to get confused with the terminology, and a lawyer can help you through the process much quicker and with results that are in your best interests. He met with three or four firms and chose one with which he felt most comfortable.

It took a while, but my brother and his family are now rebuilding their lives. Yes, they had to sell their house and many of their belongings, but contrary to the stereotypes, my brother did not get into the situation because of irresponsible spending on frivolous items like fancy cars and widescreen TV sets.

He was an honest businessman who got hit by the economic downturn.

But he is grateful for having a second chance and decided that at this juncture, he no longer wants to run his own business. My brother was forced to close down his business, which was bittersweet.

But he found a new job quickly due to his connections, and is working as a new business development manager for an electronics firm and is very happy. He has a decent paycheck with good benefits, and although his wife no longer has to work, she is continuing because she likes it. They are renting an apartment and will probably do so for several years.

I’m proud that he was smart enough to make a decision about filing bankruptcy before things got any worse. He no longer is feeling stressed and for the first time in years, he smiles easily and is able to enjoy his weekends.

Bankruptcy may not be for everyone, but it was a good choice for my brother.

Contributed by Suzy on behalf of Tim from Ohio