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A July 11, 2012 Thomson Reuters article discussed the reasons and conditions for the $103.6 million request by bankrupt law firm Dewey & LeBoeuf. The firm is the largest U.S. law firm to declare bankruptcy. It also had offices worldwide. In May, it filed for Chapter 11 bankruptcy.
The chief restructuring officer held a meeting with former partners where he explained that former partners would be asked to pay in to the firm depending on the amount they were paid. Many partners left the firm in the period leading up to the bankruptcy.
A major expense of Dewey & LeBeouf was guaranteed compensation for certain hires and partners. Those lawyers may not agree to this deal, as the firm actually owes them money. The firm wishes to collect outstanding bills.
If the partners do not pay, the firm may need to change its bankruptcy status from Chapter 11 to Chapter 7. If it follows the Chapter 7 path, then a court-appointed bankruptcy trustee would be able to take money from the partners in the process of liquidation of the firm. The lawyers would avoid long and costly litigation by accepting to pay the bankruptcy firm.
We at the law offices of Jayson Lutzky, P.C. stay informed with regards to the latest developments in the law. If you are considering filing for bankruptcy, it is important to have an experienced lawyer. Mr. Lutzky has over 29 years of experience as an attorney and has worked with thousands of satisfied clients. To set up a free initial consultation, contact our office at (800) 660-5299 or visit our website at www.BankruptcyNYC.com.