Re: Bankruptcy Filings Rise

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On 3/28/06, Jiff wrote:
> I admire your optimism, but I just don't see it that way. The
> problem I see with your analysis is that you assume debtors are
> actually going to defend against collection suits. In reality,
> they don't, not in large enough numbers to make it a viable
> practice add on.

The reason why is because they didn't have to, they simply file
Chapter 7. Why litigate if you can just walk into the BK court,
and wipe it out. But now many of the people worth suing won't
qualify for BK, so they will defend. Its really simple.

As far as independent paralegals, they never
> really took hold in my area, and as far as easy, cheap work,
> attorneys were more than happy to do it. Client comes to me and
> offers $400-500 for about 2 hours (at most) of my time for a
> simple 7, and I take it happily over and over again.

In our market the IP were doing BK petitions for $200, plus
whatever they could scam for photocopy fees. They had taken a huge
piece of the market. If it was 'easy' the IP's had it. Local
Attorneys dominated Chapter 13 because it wasn't easy, and it
became word on the street that if you wanted to File a 7 you went
to an IP but if you needed a C 13 (usually because of Foreclosure)
you went to an attorney. Lets hope the new law is as complicated
as people say, it will completely knock the IP's out of our market.

Well, I
> used to, under the old law. I share the sentiment voiced by
> others on this board that bankruptcy's glory days are behind
> us. It was the easiest money I ever made, now, back to those
> pesky divorce clients!

I think you became complacent. You were in a market that the IP's
hadn't saturated yet.

Filing petitions under the old law was easy, so easy people started
to realize how easy it was and started shopping for the lowest cost
provider which was a high school drop out with a correspondence
school bankruptcy class working out of a cubicle in the Law Library
on his lap top. The new law just shot him out of the water. It
won't hurt the core Bankruptcy Attorneys in the long run.