Lawyer Monthly - August 2024

Martin Sheehan An Interview with... Bankruptcy: A Blessing or A Curse?

What sectors and areas of law do you specialize in? My practice has tended to focus on Criminal Defense, Bankruptcy and a smattering of other complex legal problems. Donald Trump has filed for business bankruptcy four times: the Trump Taj Mahal in 1991, Trump Plaza Hotel in 1992, Trump Hotels and Casinos Resorts in 2004 and Trump Entertainment Resorts in 2009. Donald Trump responded to criticism by arguing that businesses often have to file for bankruptcy and that filing for bankruptcy was a financially sound move each time he did it. How can filing for bankruptcy be a good thing? Well-meaning and competent people can be caught financially flat footed. Bankruptcy reorganization allows a “time out” to keep productive assets together and to be made productive again. Bankruptcy is the only legal proceeding in which debt can be restructured without unanimous consent of all creditors.

liens, of an ongoing business. That can be useful.

Attorney Martin P. Sheehan, Esq – is the founder of Sheehan & Associates, P.L.L.C., located in Wheeling, West Virginia and specializes in bankruptcy law and helping businesses who cannot repay debts to creditors. Martin believes that bankruptcy is an overlooked alternative for many people, often thought of as a matter of last resort, but can be valuable. Lawyer Monthly recently caught up with Martin to discuss bankruptcy and the advantages of filing for bankruptcy earlier rather than later.

Why is it better to file for bankruptcy at the earlier stages rather than continuing to run a failing business in the hope of turning it around? No one likes to admit failure. Facing reality is often deferred. In my experience, early intervention allows a greater chance to recover. Individuals tend to a) refinance their homes to pay credit card debt, and b) cash out their retirement money. The refinancing causes unsecured debt to become secured debt. Potential exempt equity in real estate is lost in this way. Retirement money is largely exempt. Using it to pay bills causes great exemptions to be lost also. Today, an individual in West Virginia can exempt $35,800 in home equity, and a married couple can exempt twice that sum. The exemption for retirement assets is now $1,362,800. People who surrender their home equity, and their

Bankruptcy can have the primary goal of effecting a sale, free and clear of

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