Bankruptcy attorney Norman Kinel has successfully handled numerous cases and litigation involving intricate bankruptcy and restructuring matters. With more than three decades of legal experience, Norman Kinel is an active member of several professional associations, including the American Bankruptcy Institute (ABI).
ABI is the nation’s largest resource for expert information on bankruptcy legislation, trends, and regulations. Moreover, the organization publishes case studies and long-form articles from its members in its monthly journal. In the July 2018 issue, bankruptcy experts Dr. Israel Shaked and Brad Orelowitz, CPA, outlined 10 of the most recurring causes of company bankruptcy, including the few listed here.
-The downside of success
Overconfidence stemming from success often leads to risky decision-making that can cause financial issues. Company analysts may also erroneously base the company’s success solely on sales and growth and not account adequately for shortfalls.
-Poor planning
Companies may make restructuring or financial decisions that are only effective in the short-term. If financial problems occur unexpectedly, the lack of a cushion can push a company into bankruptcy.
-Fear of change
Bankruptcy is often a direct result of a company’s resistance to addressing significant changes in their market or consumer base.
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