You may already have heard of Binder & Binder from their television advertisements. BinderÂ & Binder is a Hauppauge, New York-based law firm with offices throughout the country. They employ nearly 1,000 people and handle cases related to Social Security disability and veteranâ€™s benefits. The firm has filed for Chapter 11 bankruptcy protection in a New York court according to a story in the December 22, 2014 New York Law Journal. What has prompted such a large firm to file for bankruptcy?
Just like any business, a law firm requires a steady source of revenue and a consistent cash flow in order to operate. In recent months, especially in 2013, Binder & Binder has faced serious setbacks in their business. Nearly all of the firmâ€™s $83.7 million in revenue came in 2013 came from these two types of casesâ€”veteranâ€™s benefits and Social Security disability cases. These cases have been either less profitable or slower recently. When a case deals with the federal government, the firm does not charge the client until the case settles, provided it settled favorably. Therefore, the firmâ€™s cash flow is, in some ways, in the hands of the government. The article reports that the government is handing out smaller awards and taking longer to do so. Also, the law firm claims that the 2013 government shutdown hurt their business.
In a Chapter 11 bankruptcy, the debtor receives temporary relief from creditors while it comes up with a restructuring plan that a Bankruptcy Court judge must approve. The firm will use this temporary relief to keep its firm moving, although its future is still not known.
If you are considering filing for personal bankruptcy, then you should contact an experienced lawyer to find out what your options are and to weigh the pros and cons of bankruptcy. Jayson Lutzky, who has over 31 years of experience, offers free in-person consultations. To set up an appointment in his Bronx, NY office, call 718-514-6619. Visit www.MyNewYorkCityLawyer.com to learn more about Mr. Lutzky.