Dewey and LeBoeuf, one of the largest law firms in the United States, filed for a Chapter 11 Bankruptcy in 2012. The lawyers working on the bankruptcy submittedÂ detailed fees incurred for the bankruptcy, and the judge held that the fees were â€œexcessive,â€ as reported by the New York Law Journal in a January 28, 2013 news article.
The lawyers representing the law firm in its bankruptcy submitted fees totaling about fourteen million dollars. Some of the fees which the judge cut out were the â€œtaxi rides, pricey hotel stays, and, vague time.â€ Instead, the judgeÂ granted legal fees to other law firms. Â The judge did not approve the hotel stays because the firm is located in New York, and the case is in New York, even though the advisers are not from New York. In addition, the judge did not award for frivolous things like taxi and car service around New York City as the subway or bus can be taken, and the firm should cover the cost.
Even though the fees were approved by the judge, it does not mean that they will be completely paid. There was a budget that was set aside months ago and these law firms will only get what was set aside in this budget by the leading lender. Â If the firms went over their budgets, then they are able to obtain the full value, however if the firms did not go over their budgets, then they might be able to recover about 80%.
Before the law firm filed for bankruptcy, it hired a financial advising/restructuring firm to help limit its costs. The firm continued to use the restructuring firm and its fees are extensive as it totals about $250,000. The judge had an issue with the amount the firm charged for preparing the bankruptcy.
If you are facing financial difficulties, having trouble paying your mortgage or your auto loan payments, then you may wish to consider bankruptcy. Mr. Lutzky of Jayson Lutzky, P.C. offers free in office consultations. He can help you determine if bankruptcy is truly your best option. With 30 years of experience, he is a skilled lawyer. You may reach his office at 1-718-329-9500 or you can visit his Website: www.MyNewYorkCityLawyer.com.