Surviving the Great Recession: Key Lessons for Business Owners

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Sep 11, 2014, 03:29 ET

SACRAMENTO, Calif., Sept. 11, 2014 /PRNewswire/ -- The Great Recession's effects shook the country. Financial plans were shattered. Businesses were permanently shuttered. House foreclosures were common. Layoffs became permanent. Lenders' suits on personal guarantees of business obligations overwhelmed some of the country's most important economic sectors.

Now, some years later, many want to forget the Great Recession. Others will not forget, but rather use the memories of economic devastation as guides to avoid future mine fields.

Most of us have a story about something that we've experienced and vowed not to repeat. While we are human and often repeat mistakes, efforts at mistake avoidance are worth the energy spent – even with sometimes-imperfect results.

The years of the Great Recession traumatized many business owners. Layoffs, write-offs, closures, lawsuits and workouts became common. Here at Hackard Law, we've counseled and defended many business owners during the Great Recession on issues that they hardly expected or wanted. Litigation stemming from the consequences of the economic meltdown have, in some cases, endured into 2014.

Business owners today should ask themselves exactly what we business litigators asked business clients in the Great Recession. Do you have a retirement plan? Does your retirement plan have ERISA protection against creditors? Are you the beneficiary of any third party trusts?

Formation and operating documents of entities require considered attention to details of transfer as well as accessibility to creditors. Revocable trusts provide no asset protection against creditors. Buy-sell agreements in partnerships, corporations and limited liability companies are often ignored until creditor challenges force business owners to pay attention.

Business planning is a luxury for when times are good – or at least tolerable. Many business people injured by the Great Recession vowed that they would never forget its lessons. Get ready for a wakeup call – it's time to renew these vows.

About Hackard Law, a Professional Law Corporation Hackard Law focuses on business, estate & trust, wrongful death and catastrophic injury litigation. For more about Michael A. Hackard, see:

http://www.avvo.com/attorneys/95655-ca-michael-hackard-226264.html

CONTACT

Michael A. Hackard, Hackard Law
10630 Mather Blvd.
Mather, Sacramento County, CA 95655
Phone: 916-313-3031

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SOURCE Hackard Law