Law Firms Beef Up For Bankruptcy Work, the Hottest Growth Area

Law Firms

Law Firms Beef Up For Bankruptcy Work, the Hottest Growth Area

Posted Mar 31, 2008, 04:55 am CST
By Debra Cassens Weiss

A new survey has found that lawyers expect bankruptcy to be the hottest growth area for law firms this year. That’s no secret to law firm managers who are already beefing up bankruptcy practices.

One out of four lawyers surveyed said the fastest area of growth would be in bankruptcy work, exceeding the number who designated corporate governance and litigation as the sectors most likely to see increases, the Wall Street Journal reports (sub. req). More than 300 lawyers from large law firms responded to the survey by Robert Half Legal.

Managers at two law firms told the newspaper they are already adding more lawyers to their bankruptcy and restructuring departments.

Gregory Milmoe, the co-leader of the corporate restructuring department at Skadden, Arps, Slate Meagher & Flom in New York City, said demand for bankruptcy services at his firm has “emphatically increased.” His group has increased by 17 lawyers and he expects three more will be added over the next two months. In January and February, the department billed 45 percent more hours than the same period last year.

Marshall Huebner, who co-chairs the bankruptcy group at Davis Polk & Wardwell, said his lawyers are “extremely busy.” The firm cross-trains lawyers and has moved 15 of them from banking and litigation work over to the bankruptcy department.

The survey results are good news for lawyers with three to five years of experience in bankruptcy practice who want to move to a new job, said Charles Volkert, executive director of Robert Half Legal.

"Hands-on experience really matters,” he told the Wall Street Journal. “Legal professionals who are able to demonstrate a proven track record in that area are in demand."

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Posted by Rita Perona - 7 months, 3 weeks, 1 day, 15 hours, 13 minutes ago

I hope our current administration reads this article. Maybe then they will come out of denial regarding the current economic crisis in this country.
Posted by anonymous - 7 months, 2 weeks, 5 days, 18 hours, 42 minutes ago

I hope that some of the large law firms donate some pro bono hours to some consumers who can’t afford attorneys to help them out with some consumer bankruptcies!
Posted by jonathan edwards - 7 months, 2 weeks, 4 days, 20 hours, 47 minutes ago

actually, it is perfect for solos, who could do individual Chapter 7’s for a minimal amount, because some folks who can’t afford big fees can afford to pay some, and may not have a lot of assets or liabilities, they are simply upside down in them. for some folks, it only takes a few hours to do their paperwork.
Posted by JLee - 7 months, 2 weeks, 4 days, 20 hours, 42 minutes ago

Like anonymous said, it would be a great idea for lawyers to do pro bono work in this area. Not only is it socially good, it’s a good way to get experience.
Posted by anonymous - 7 months, 2 weeks, 4 days, 19 hours, 22 minutes ago

Are you kidding? Lets just all do pro bono work until we have to file bankruptcies for ourselves? It must be nice to be in a firm or an ivory tower, but keep pro bono to a minimum on this, solo practitioners need to survive too.
Posted by jonathan edwards - 7 months, 2 weeks, 4 days, 18 hours, 41 minutes ago

Anon is right on this, I think bankruptcy is the wrong place to do pro bono. I like adoption as a pro bono area. if word got out, and it will, that you do bankruptcy for free, you will be flooded, and when you refuse, you will be castigated.
Posted by William F. Mills - 7 months, 2 weeks, 4 days, 16 hours, 49 minutes ago

Right up your alley!
Posted by biglaw - 7 months, 2 weeks, 4 days, 16 hours, 45 minutes ago

I used to do a lot of pro bono consumer chapter 7s (an occasional 13.) You couldn’t ask for more unappreciative clients (and mostly lazy) who take you for granted.
Posted by Rock&Roll - 7 months, 2 weeks, 4 days, 16 hours, 16 minutes ago

The average consumer that really needs to file for bankruptcy is bogged down by their monthly debt requirements or garnishments so when a bankruptcy is filed it would free up money to pay an attorney. There is very little need for pro bono work in bankruptcy law. There are plenty of solos and “mills” that can take care of these people at an affordable price. Also, what would obligate a large firm to help people who have either riddled themselves with debt or come under some unfortunate circumstances (medical bills or lay-offs)???

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