Preventing phoenix companies from taking flight with your money - Crawford Ellenbogen

Bankruptcy can be a valid business tool when used properly. Unfortunately, it can also enable less-than-honest business owners to profit at the expense of their creditors. Such is often the case with “phoenix” companies that rise from the ashes of businesses that were deliberately run into the ground. To avoid becoming the unpaid creditor of a shady business owner, don’t extend credit to customers whose payment history you can’t verify. And if you suspect that a bankrupt owner is funneling assets from the old company into a new one, ask us to investigate.