Ohio Practical Business Lawyer & Attorney : Teri Rasmussen : Lane Alton & Horst Law Firm : Commercial Law, Creditors, Business Formation : Columbus, Central Ohio

Today I thought I would try to summarize some of the networking and other resources especially (although not necessarily exclusively) available to women who own their own business.  Because I have been active in  several of these organizations in Central Ohio, I want to particularly highlight some opportunties available locally.  If you know of others that should be included, please comment to this post. 

Women's Presidents' Organization (WPO) - a national organization with two local chapters in Central Ohio.  Membership is limited to companies with annual revenues of at least $2 million (or $1 million in the case of service-based businesses).  Chapter membership is limited in number and chapter members enjoy the benefits of an unofficial advisory board composed of other chapter members and a facilitator.

National Association of Women Business Owners (NAWBO) - a national organization with a local Columbus chapter luncheon meeting on the second Thursday of each month.  Membership is open to any woman having at least a 5% ownership stake in a company.  Each July, NAWBO presents its Visionary Awards to local women exemplifying business success.  (Click here for information about past winners.)  In addition, the Athena PowerLink program provides one recipient each year with a volunteer advisory board consisting of professionals such as lawyers and CPAs.

Women for Economic and Leadership Development (WELD) - Columbus-based organization entering its fifth year of existence which is dedicated to providing women with the tools and opportunities for growth and development economically and in the leadership of civic, community, and business organizations.  Meets monthly for breakfast or dinner on the second Wednesday of every month.  Distributes a Women You Should Know calendar annually highlighting women in the Central Ohio area who have demonstrated leadership qualities, but are not as well known as their achievements should warrant.  Annual keynote event featuring a national speaker each May.

Business and Professional Women (BPW) - a national organization with a local Columbus chapter meeting on the second Thursday of each month.  Mission is to achieve equity for women in the workplace through advocacy, education, and information.

eWomen Network - national networking organization for women with a local Columbus chapter.  I haven't been to any meetings of this group, but I've heard good reports. 

Women's Business Enterprise National Council (WBENC) - National organization offering the opportunity for qualified women-owned businesses to be certified as a WBE (Woman's Business Enterprise) by completing a lengthy application.  WBE certification is probably most useful for companies wishing to contract with major national companies with diversity initiatives.  

Women's Initiative for Successful Enterprising (WISE Women) - local educational series offered by Columbus State and the Ohio Small Business Development Centers dedicated to empowering and strengthening the business growth efforts of all women business owners by meeting them at their growth level need.

And finally, mainly because it's a lot of fun in addition to being a helpful resource for gaining a skill useful in the business world.....

Executive Women's Golf Association (EWGA) - Consists of more than 20,000 members in 120 local chapters across the United States and Canada dedicated to providing opportunities for women to learn, play, and enjoy the game of golf for business and for life.  The Columbus Chapter holds its opening Kickoff event of the season on Wednesday, March 12, 2008 beginning at 6 PM at the Dublin Marriott near Tuttle Crossing Mall.   The organization has activities for golfers of all skill levels, from beginners to advanced competitition.  If you've ever thought about trying golf out for business or just for fun, come to the free Kickoff reception and see what it's all about. 

>> Various industries may also have various networking groups available to women.  And there may certainly be other organizations of which I am not aware.  But these are the ones I've tried and found useful.   

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Sooner or later every business experiences the bankruptcy of one of its customers.  If the customer has a large unpaid balance, this can be an especially unnerving experience.  There are, however, some basic things to know and do.

            1.  Don't Ignore the Filing.  The most important thing not to do is continue collection action against the debtor.  When a bankruptcy is filed, it triggers an "automatic stay".  The "automatic stay" prohibits any further action or activities against -- or affecting -- the debtor, the debtor's interest, or the debtor's property.  This includes foreclosures or sheriff's sales, garnishments, collection calls and, of course, the commencement or continuation of a lawsuit.  Violation of the "automatic stay" can result in monetary fines and sanctions against the offender.

One important "exception" to the "automatic stay" does exist for creditors who have shipped goods to the debtor which have not yet been delivered at the time the bankruptcy is filed.  In this situation, the creditor may stop the goods in transit and refuse delivery unless paid in cash.

            2.  Document the Debt Owed by Filing a "Proof of Claim".  To have any reasonable hope or expectation of receiving any payment on the debt owed, a "proof of claim" must be filed with the Bankruptcy Court by the designated deadline.  Frequently, though not always, a "proof of claim" must be filed within the first four to six months after the bankruptcy has been filed so prompt action is often necessary.  You do not have to be a lawyer to complete and file the proof of claim.

The initial notice of the bankruptcy will often contain a proof of claim form that can be filed out.  The "proof of claim" should set forth the basis for the debt (i.e. the service or product purchased), attaching copies of any written contracts or documents giving rise to the debt, identify any collateral pledged to secure the debt and specify the exact amount owed to the creditor. 

Filing this document with the bankruptcy court ensures that a creditor will share in any subsequent distribution of the debtor's assets.  It also makes it more likely that the creditor will receive notice of important events and deadlines in the bankruptcy. 

            3.  Read and Analyze the Initial Basic Documents.  At the time the bankruptcy is filed, or shortly thereafter, the debtor is required to file its "Statement of Financial Affairs" and "Schedules of Assets and Liabilities".  These documents list the names of creditors and amounts owed to each.  They also provide insight into the recent history and current state of the debtor's financial affairs and can be useful in determining the prospects and potential amount of any repayment of the debt owed.    

            4.  Attend the "First Meeting of Creditors".  Within the first month or so after the bankruptcy has been filed, a "first meeting of creditors" will be held.  Creditors who have been listed by the debtor will receive written notice of the time and place of this meeting; others can check with the bankruptcy court or the office of the United States Trustee for the district.  Attendance at this meeting is not mandatory for creditors.  However, the debtor is required to appear and answer questions under oath by the United States Trustee and any creditor in attendance about events causing the bankruptcy, prospects for repayment and other matters related to the bankruptcy.  You do not have to have a lawyer to participate and ask questions.   Thus, a creditor who fails to attend loses a valuable opportunity to learn about the debtor's financial situation and intentions.

            5.  Don't Expect Prompt Payment of Past Debt.  What happens next in the bankruptcy depends upon what type it is and the number and type of creditors affected by the filing. 

• In Chapter 7 liquidation proceedings, a trustee in bankruptcy (not the United States Trustee) will evaluate and dispose of the debtor's unencumbered assets, if any; after analyzing the claims made by creditors, the Chapter 7 trustee will then distribute those assets pro rata among eligible creditors who have filed a proof of claim. 

•  In a Chapter 13 "wage earner" proceeding, designed for individuals with ongoing income, a portion of the debtor's "regular income" over a period of generally three years, though sometimes longer, will be paid to a Chapter 13 Trustee to repay creditors in accordance with the terms of a "plan" approved by the bankruptcy court.

• In Chapter 11 reorganization proceedings, the debtor remains in control of its financial affairs and operation of its business while it attempts to develop and negotiate a "plan of reorganization" which provides for the treatment of creditor's claims; this treatment frequently involves large discounts of the amounts owed.  Chapter 11 proceedings are often complex and take months, or even years, to reach a conclusion.  The largest creditors in these cases may be invited by the United States Trustee to serve on an Unsecured Creditors Committee which acts as a fiduciary on behalf of the general creditor body with respect to evaluation of the "plan of reorganization" and other events during the course of the bankruptcy. 

            6.  Decide How to Participate.  A creditor's appropriate level of participation will naturally depend upon the nature and amount of the indebtedness, as well as upon the perceived prospects for repayment.  Creditors holding collateral will generally have the most leverage and the highest level of interest in the case; they may want to seek a lifting of the automatic stay so they can pursue their state court remedies and will undoubtedly have a number of other concerns raised by the bankruptcy.  Landlords and lessors are also afforded significant rights under federal bankruptcy law.  Trade creditors and other owed relatively small amounts may often find it cost effective to restrict their involvement to filing a proof of claim.

Many creditors view the "fresh start" philosophy of the federal bankruptcy laws as just another dodge for delinquent debtors.  However, there are also many provisions designed to protect creditors and assure an equitable distribution of the debtor's assets among all creditors.  A basic understanding of the fundamental aspects of bankruptcy can help avoid inadvertent pitfalls while maximizing the possibilities of at least some recovery of a bad debt.

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If I were not an attorney, I would want to be an architect because architecture at its best requires one part dreamer who can imagine things that don't yet exist (but should) and one part detail oriented realist who understands the laws of gravity and physics and can make a concept concrete, literally.  In the same way, I have always thought that the practice of law should be one part innovative, bound only by complex and intangible concepts of fairness and justice, and one part practical and pragmatic, responsive to the "real world" concerns of businesses and individuals who find themselves caught up in it voluntarily or involuntarily.      

My goal for this blog is to provide information which will allow readers to make better legally informed business decisions.  I intend to write about legal issues confronted by businesses, primarily those privately held and owner operated, and those who own and operate them.  As an Ohio attorney with more than twenty years of experience in business, corporate, commercial, and real estate law, my focus will be on how these play out in Ohio.      

 Ohio Practical Business Law Counsel means 

• my perspective and focus will be Ohio-based

• I will write more about Practical legal issues and pragmatic solutions than about interesting, but esoteric, academic concepts

• most of what I write will relate to Business, corporate, and commercial legal concerns rather than to individual, personal, or consumer legal issues

• what I say may sometimes have a subjective element in it best thought of as Counsel and advice - readers need to think about how it applies in their particular situation

And, finally, at some point you knew there had to be a disclaimer somewhere and here it is:

It is important to remember that the information contained in this blog is intended to convey general information.  It is not an offer to represent you, nor is it intended to create an attorney-client relationship.   In addition, it is not meant to be all-inclusive or comprehensive.  It should not be construed as legal advice or opinion to be followed without further consultation with an attorney.

Let the experience begin....

Teri Rasmussen is a Partner and Vice Chair of the Business Law Practice Group at Lane, Alton & Horst, LLC in Columbus, Ohio. To learn more about me, visit my law firm's website at http://www.lanealton.com/

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