At work with Karen M. Crowley, insolvency attorney

Because people often wait until the last minute, their situation may have reached the state of emergency when they arrive at our firm. If you look at my calendar for next week or the following week, there may not be much on it. However, somebody will call tomorrow and say, "The bank just gave me a notice of default " or "I've just been sued," and we have to jump into action.

We have to evaluate the risks, including what a client might lose, and the best way to resolve their problem. We have to understand their assets and liabilities and the creditors' options for tapping into those assets. We have an arsenal of tools, primarily negotiation, litigation and bankruptcy, to resolve a crisis. The majority of our cases are resolved without a bankruptcy.

When I was in high school, I decided I was going to be an attorney. I didn't fully understand what an attorney did, but my father encouraged me. He said I was logical and analytical. He was in the construction industry and dealt with claims, so he was familiar with attorneys and the skills they needed.

After graduating from law school, I clerked for a year with then-U.S. Bankruptcy Judge Hal J. Bonney Jr. in Norfolk. I had taken a bankruptcy course in law school. I felt that bankruptcy would be a good fit for me because it is a numbers-based and code-based practice.

During my clerkship with Judge Bonney, I was offered a position with Marcus, Santoro & Kozak, which specialized in bankruptcy and was the premier debtor firm in the region. When Frank Santoro became a bankruptcy judge in 2008, we continued the firm and maintained our specialty in insolvency law.

Seventy-five percent of our clients come in with business issues and business debt. The other 25 percent of our clients have consumer debt.

I rarely file Chapter 7 bankruptcy for businesses since Chapter 7 involves the liquidation of assets for the benefit of creditors overseen by a trustee. In my experience, the people running the business have more expertise at selling the assets, collecting the receivables and ensuring that the money is paid to the creditors. It usually makes more economic sense to allow the business to wind down its own operations.

With respect to restructuring business debts in a Chapter 11 bankruptcy, people generally know - or suspect - what's likely to happen in a Chapter 11. Often the same, or better, results can be reached outside of bankruptcy without the delay and additional costs. Banks and other creditors are fairly pragmatic. I find that they are willing to listen when you approach them with a comparison: "This is what you're going to get in a bankruptcy" and "This is what I'm offering."

During the 17 years I've been practicing, Chapter 7, a liquidation of assets, has become more difficult. It requires more documentation and preparation, which has made the process more time-consuming and expensive.

One thing that has shaped my views on bankruptcy has been seeing the burden on individuals and businesses when they struggle with too much debt. In conversation, some people will express their disapproval of bankruptcy or a person who has filed for bankruptcy. What I see are people who have typically explored every option to avoid bankruptcy. You can see that it is wearing on their marriage, their health and their family. I'm able to provide them with some relief from a heavy burden, which makes my practice very satisfying.

-- As told to Pilot writer Tom Shean