A group of creditors attempting to force defunct consumer law firm Jacoby & Meyers Bankruptcy LLP into chapter 11 protection are urging a court to rule that bankruptcy is the best way to protect unhappy clients left in the lurch by the firm’s demise, The Wall Street Journal Law Blog reported Wednesday. In a Tuesday filing with the U.S. Bankruptcy Court in New York, creditors like online document service Legal Zoom say that “the total lack of disclosure and transparency” surrounding the firm’s December 2013 closure prompted them to file an involuntary bankruptcy petition against the firm in March. Jacoby & Meyers Bankruptcy was formed in June 2012 as an alliance between national consumer firm Jacoby & Meyers LLC and the bankruptcy practice of Chicago lawyer Thomas Macey. A year and a half later, Jacoby & Meyers Bankruptcy closed and put itself into the hands of a trust intended to liquidate the firm and repay its debts. Creditors say the firm’s trustee isn’t going far enough and would like to see the firm unwound through bankruptcy. Representatives from the defunct firm and those bringing the involuntary petition are scheduled to appear May 28 before Judge Shelley Chapman.
