re: McGlinchey files for Chapter 7

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I can only assume you just got your advance refund from Jackson Hewitt, supersized your McDonald's meal and think you are doing just fine.

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I didn't supersize my McDonald's meal. It's Lent.

The small business that get screwed is massive. IT contractors, audio video guys, copy tech companies. They all get wrecked. Most services are paid after the jobs are done and they just get the old screw job since they are unsecured debt.

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Chapter 7s of a large business matters, particularly if a few cascade into may, then you do not understand how the economy works

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This isn’t Shell, Wal Mart or McDonald’s shutting down. This is a regional legal firm. This won’t cause a ripple in the grand scheme of things. You’re being a little dramatic. Every single lawyer will have a new job within a week (unfortunately). It’s not noteworthy at all.

i believe is it malpractice to file ch. 7 for a corporation. They just turned over all of the assets, books and records to the ch. 7 trustee. get a trustee like we have in baton rouge, and she and her attorney will rape the corporation liquidating the assets and digging for misdeeds, all while billing by the hour.

Corporations don't get discharges and a corporate ch. 7 does not discharge personal obligations made by shareholders.

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Most contractors aren’t stupid. I’d bet most hear attorney or doctor and immediately request payment upfront and add an additional fee for potential headaches.

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Most contracts are from owner to general contractor. Most general contractor to subcontractor contracts are “Pay when Paid”. Meaning the General contractors does not pay subs until they are paid. (If never paid they never have to pay).

Subs can lien a job but in bankruptcy then they are SOL.

Also standard contracts are billed monthly on work done the previous month and usually payment pays 45 days on a good job but closer to the 60-90 day after invoicing. Then there is the 10% retainage that is held from every billing and only paid after the job is accepted as substantially complete.

So at a minimum the contractors for work ongoing are out 10% retainage but likely more due to delay in payment time frame.

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If you do not think Chapter 7s of a large business matters, particularly if a few cascade into may, then you do not understand how the economy works. I can only assume you just got your advance refund from Jackson Hewitt, supersized your McDonald's meal and think you are doing just fine.

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If a lawfirm that's been around 50 years has more than a few million worth of obligations that a Ch7 will affect, then nobody in the firm understood the economy either.


My accounting degree and MBA thank you for your observation though. I think we'll be OK with one less PI firm

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Most services are paid after the jobs are done

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I laugh to myself when I see those terms on a credit sheet. I laugh out loud when I see "services are paid after the jobs are completed and we are paid."

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Gordon next

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Hey back off our NIL Baw, Baw.