‘The first thing we do, let’s kill all the lawyers.’
Ah, yes. This is why people hate lawyers. When a business files bankruptcy, creditors typically lose money, but lawyers usually make a profit. From Law.com:
It’s the business of bankruptcy, and these days, with four major airlines in Chapter 11, it’s big business.
The litany of firms that will provide professional services to Delta and Northwest as they wade through bankruptcy court will rack up fees of tens, perhaps hundreds of millions of dollars over the next few years. A partner at one of the firms helping Delta charges $795 an hour.
Businesses filing bankruptcy have interests to protect, and lawyers are needed for a variety of reasons, such as making sure companies adhere to bankruptcy law and helping to draft reorganization plans that are proper. Lawyers have to earn a living like any other professional, and the bad rap is often undeserved, but $795 an hour certainly strikes a chord amongst those creditors who are recovering only a small percentage of what they are owed.
