Despite all good intentions, plans, and attempts, sometimes businesses fail. In the past that often meant long, involved, and expensive litigation perhaps combined with bankruptcy proceedings.

In the last several years, however, many companies have been able to satisfactorily work out the terms and conditions of their re-organization before going into court. This pre-bankruptcy planning has, in several cases, shortened the length of time required to confirm the debtor company's plan. A shorter time under court supervision may mean a faster return to normal operations, a speedier resumption of earnings, and a more rapid restoration of business value.

Many times, the business' creditors participate in the planning process. Consequently, their acceptance of the plan is more likely with many of the same benefits mentioned above.

This step is not for every business. But, under some circumstances, pre-bankruptcy planning and the related procedures may mean the difference between a relatively speedy return to good business hea lth, or a slow painful illness perhaps resulting in liquidation.