"So many of these enterprises were set up as simply 'pre-IPO' ventures, with no effort made to show a profit. The investors hoped that they would be able to cash out in a matter of months or at least bring the company public and reap millions in profits. But it was not to be. Instead, the investors often lost millions of dollars. Now, it makes sense to cut losses and cut taxes at the same time," added Gold. "It was only natural for the companies on the bubble to try to hold on as long as possible. Indeed many are still holding on. But now clearer vision is beginning to take hold."

Gold, whose firm advises dotcoms and their backers, says that there will be an end-of-year rush to Chapter 7 (bankruptcy).

Gold Morrison & Laughlin PC is the Washington, D.C. metropolitan area's leading independent bankruptcy and financial restructure law firm and represents lenders and borrowers in financial restructures, bankruptcy proceedings, out-of-court workouts, credit recovery litigation and foreclosures. The firm represents many area financial institutions and has participated on behalf of clients, in virtually all the major reorganization cases undertaken in the jurisdictions of the Washington metro area. For further information contact H. Jason Gold at 703-836-7004. E-mail: jasongold@goldmorrison.com .