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THE VALLEY BUSINESS JOURNAL 12 www.TheValleyBusinessJournal.com January 2017 Preventative Law – “Protect Your Business” Advertise with a proven winner! (951) 461-0400 LEGAL by by Steven E. Brunette, Esq. Steve Fillingim So many of my clients are so “busy” – developing & producing products, marketing, selling, making new connections - they simply forget to establish, and manage the infrastructure of their business. This can be a critical mistake – and financially disastrous. Having spent 40 years as In House VP General Counsel with Billion $$ companies, Contract Corporate Counsel with Multi-Million $$ companies, and Contract Counsel for start-ups and entrepreneurs – this has always been my first advice to Clients and to focus upon. In simple terms, establish procedures and solid business practices “before” the mess, litigation or claims – which you will then be required to hire lawyers to clean up (no offense intended to my legal colleagues) – at substantial costs and lost time. Here are some Strategic Business Infrastructure Elements: Business Plan – Assuming an original was created, has it been reviewed, modified (usually required), and followed? Have you updated, re-considered, re-evaluated the market and your competition? Met your objectives? Modified your objectives? Financial Controls/Banking – Have you established dual signature requirements from CEO/CFO for significant financial obligations? Established a regular check up with your Personal Banker (i.e., in today’s world hacking accounts and compromised accounts is prevalent)? Contracts – The old “handshake” is long gone. Are your Contracts in writing, prepared by legal counsel, and enforceable? Have you considered arbitration clauses versus litigation (much more expensive)? Have you considered the ability to recover monies due and owing – even should you succeed in litigation? Human Resources – One of the most important areas – hiring and firing – always brings in the plaintiff lawyers. Have you an Employee Handbook? Imperative – rules & regulations keeps the structure in place. Records Maintenance & Record Retention Policy – To many C-Office executives keep every contacts/correspondence/and connections for their entire career. In a litigation proceeding, request for documents will be extensive and possibly destructive. I have seen this occur many, many times. Establish a Policy of 5-7 years, and regulate it through management policies. Have your CPA advise you on Tax Returns and maintenance. Insurance – Protect your Company, your Officers & Board Members – discuss this at length with your Insurance Agent. An Umbrella policy is often suggested and well useful. Intellectual Property - Be certain all of your IP is protected and enforceable. It may be expensive to protect and enforce, but that is a decision you make when threatened or exposed. Information Technology – Your database can be the most important part of your business. Be certain it is secured and maintained on a regular basis by your IT Administrator. Succession Planning – What happens if your CEO or CFO or whomever gets seriously ill or just leaves your Company? Who takes control? How do you transition the business with little or no delays? Establish a Plan and review it regularly. Find or train new Executives who have the talent and abilities to succeed. One final comment – remember this – “Everyone is Watching”. Your competition, your clients and all the Government agencies and the class action plaintiff attorneys. Take this advice as only that as it is not intended as legal advice or representation, but is offered to the public - to help you succeed. © 2016 Law Offices of Steven E. Brunette, All Rights Reserved. Steven E. Brunette, Esq. Attorney at Law, LAW OFFICES OF STE- VEN E. BRUNETTE, Cell phone (714) 356-2607. Murrieta Office 951- 200-7991, Fullerton Office 714-993- 1593 - www.brunettelawoffices.com www.linkedin.com/in/stevenbrunette “ What happens if your CEO or CFO or whomever gets seriously ill or just leaves your Company? Who takes control? How do you transition the business with little or no delays? Establish a Plan and review it regularly. Find or train new Executives who have the talent and abilities to succeed.
January 2017 THE VALLEY BUSINESS JOURNAL www.TheValleyBusinessJournal.com 13 Have You Recently Thought: “Is Bankruptcy Right for Me?” by Morton J. Grabel, Attorney at Law For many people, declaring bankruptcy is not only a financial decision; but sometimes a personal one. Therefore, no one can really advise you if it’s right for you. However, factors such as the stigma of filing bankruptcy has considerably lessened over the years. Moreover, the Federal Government has deliberately carved out a place in the IRS Code [for example a Chapter 7] for individuals who need a fresh start by filing bankruptcy. In light of the preceding, consider the following: 1: Can you file for bankruptcy? If you have enough money to pay your creditors, you may be ineligible to file for bankruptcy. Question - How would the bankruptcy courts know if you are qualified to file for bankruptcy? Answer - You will be required to complete specific paperwork, show recent tax filings and pass the “means test” created within the Bankruptcy Reform Laws. If you make less than the median income established in California, you may qualify. On the other hand, if your income exceeds that figure and you have money left over after paying your necessary monthly expenses, you might not be able file. 2: Your immediate future is bleak and you do not predict it getting better without filing bankruptcy. Question - But what if you know your hardship is temporary? What if you foresee better cash flow in the next couple of months or 6 or even 8 months from now? Answer - You may want to wait it out. When your financial circumstances improve, you can pay down more of your debts. But then again, only you know if you can endure the pressure of collections letters, services being cut-off, debt collectors calling you and creditor lawsuits being filed against you. 3: Ok, but what if: a] your debts are long term, b] your income continues to dwindle, c] there is a no light at the end of the tunnel and d] most debts are unsecured? Question - Will all of your debts and liabilities go away in bankruptcy? Answer - Bankruptcy discharges most unsecured debts such as credit and charge card balances, medical bills, collection accounts etc. Note: * Other debts like student loans, certain tax debt, certain legal bills and child support arrearage may not go away even though they are unsecured. In addition, liens on a secured debt like a mortgage or a car loan may remain your obligation to pay unless there is a “cram down”. So look at your liabilities: If the bulk is dischargeable, you may wish to file a chapter 7 bankruptcy. [There is also a chapter 13 Bankruptcy, but that is for another day]. 4: Be sure you thoroughly understand the downside of bankruptcy and the conditions that must be met in order to be successful in your bankruptcy. Question - What exactly do you mean the downside and the conditions of bankruptcy? Answer - For example, your credit rating score will drop and the bankruptcy filing will be on your credit report for a long time. Also, there are some simple conditions that must be met: a] For example, you will be required to take a Pre-Bankruptcy Credit Counseling Course after you file your petition for bankruptcy. The course is inexpensive and takes usually about 60 to 90 minutes to complete. b] There is also an inexpensive Post-Bankruptcy Debtor Education Course. The course is usually a little more than 2 hours and must be completed no later than the 45th day after the creditor’s 341 meeting. Both courses can be taken on-line by computer or by telephone. Joint bankruptcy filers can take the courses together. Thank you for taking the time to read this article on Bankruptcy. Our office provides Chapter 7 bankruptcy services for only $1385 including filing fees and attorney representation at the 341 hearing *in Riverside County Only*. Please note the information provided above is general and must not to be relied upon for your specific legal needs. *You should always consult an attorney to answer your legal questions. For more information about bankruptcy or other legal matters, contact the Law Offices of Morton J. Grabel here in Temecula at (951) 695-7700. Mort is a graduate of an ABA Law School, possesses an MBA, is a Licensed Nursing Home Administrator in good standing and also a licensed Real Estate Broker. He formerly served as the President of the Mt. San Jacinto/Hemet Bar Association, for the years 2013-2014 and is a member of several Chambers of Commerce. “ On the other hand, if your income exceeds that figure and you have money left over after paying your necessary monthly expenses, you might not be able file
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