Bankruptcy is usually filed by the person or entity that is unable to pay its debts, and that is looking for either a discharge of such liability or to establish some sort of a repayment plan, as per a Chapter 11 or a Chapter 13 bankruptcy respectively.  However, recently a few creditors filed a petition in a New York Bankruptcy Court against a bankruptcy law firm seeking payment for their services, as reported by the New York Law Journal in an April 16, 2014 article.

One of the creditors was able to obtain a judgment of at least $1 million against the firm before filing this petition. However, this bankruptcy firm, Jacoby and Meyers, was shut down about two years ago, and it was part of a Chicago based firm. As a result, the law firm claims that the case “should be dismissed because New York is the wrong venue.” In addition, the firm claims that its business is located in Chicago as its high ranking officers, its employees and its assets are all located in Chicago. Furthermore, it claims that its New York office “was only a satellite office that closed months ago.”   Moreover, the firm claims that if the court does not agree with it to dismiss the case then the case should be moved Illinois.

The attorney for the creditors is reviewing the legal claims made by the bankruptcy law firm before it proceeds with it case.  However, the ultimate decision of whether the venue is proper or improper lies with the court.

If you are considering filing for a personal bankruptcy, then contact the law office of Jayson Lutzky, P.C. Mr. Lutzky has helped thousands of highly satisfied clients over the past 30 years. Chapter 7 bankruptcy wipes out nearly all debts. If you cannot pay your credit card bills or you are behind in mortgage payments, then call 718-514-6619 to set up a free in person consultation with the lawyer. For more information, visit