The collapse of the Jacoby & Meyers Bankruptcy LLP law firm, which was formed in 2012 by two consumer law giants, has mobilized some unpaid creditors to push for their final payments, the Wall Street Journal reported yesterday. LegalZoom.com Inc., which says it is owed about $1 million for leads it provided to Jacoby & Meyers Bankruptcy last fall, joined several other creditors to file an involuntary bankruptcy petition against Jacoby & Meyers Bankruptcy last week. The move is meant to pressure the assignee, Chicago financial professional Robert Handler, to investigate the firm’s former managers and to look other places for potential lawsuits that might win money — some of which could repay the firm’s bills. According to lawyers who are representing creditors, Handler said that the firm will pay what debts it could from its few remaining assets: contingency fees receivable, furniture and equipment. If the firm enters bankruptcy, their lawyers would be given more power to recover money, and it would provide more transparency and information for creditors, lawyers for creditors said in court papers.
