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The New York law firm Dewey and LeBoeuf, LLP went bankrupt for several reasons. One of the most prevalent reasons was its large guaranteed compensation packages and according to a July 5, 2012 Wall Street Journal article, the firm wants to keep it that way.
The firm has 52 employees right now. Many attorneys and staff members left the firm in the months leading up to the bankruptcy. The office claims that it is necessary to offer these remaining employees $700,000 in combined bonuses so that they can “complete an orderly liquidation,” according to bankruptcy court papers.
Without such bonuses, “a meaningful distribution to creditors would be severely compromised,” according to the same papers. The remaining staff is a “core” team that is currently finishing tasks like billing and collection so that the firm can “wind down.” The core team comprises the staff necessary to do so. The firm’s leadership does not want to lose those staff members so they think that the bonuses are necessary.
At the law offices of Jayson Lutzky, P.C. we have an exemplary recorded of having helped thousands of clients over the past 29 years. If you are in debt or are considering bankruptcy, we can offer you a free in-person initial consultation. Mr. Lutzky will explain your rights to you. To set up a consultation, call our office at (800) 660-5299 or visit us online at www.BankruptcyNYC.com to learn more.