Thursday, May 7, 2009

Study Claims Bankruptcy Lawyers Are Billing Illegally

In a recent story published in the ABA, Debra Cassens Weiss states that "A new study claims bankruptcy lawyers are billing their clients illegally by failing to get court approval before collecting fees. The study found that the lawyers bill bankrupt companies for about 80 percent of their fees without first submitting the charges to a judge as required by the U.S. Bankruptcy Code, Bloomberg reports. The study says the fees are instead reviewed later, but the payments “are harder to reverse than to prevent," according to accounts in the American Lawyer and the Wall Street Journal Law Blog."

The story is here. For a story on on the same topic go here

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