The largest consumer bankruptcy law firm in Illinois and one of the biggest in the country has filed for bankruptcy after taking millions in taxpayer-backed loans meant to help struggling businesses survive the pandemic, the Chicago Sun Times reported. The Semrad Law Firm LLC, which markets itself as DebtStoppers, filed for chapter 11 bankruptcy on April 26 in Delaware — blaming the COVID-19 pandemic. The PPP loans were aimed at small businesses that needed help maintaining their payroll, but court filings show Semrad Law was using paralegals and call center workers in Bulgaria while ultimately cutting its U.S. workforce in half. Its Bulgarian vendor, ZenTeli OOD, is partly owned by the two brothers behind Semrad Law. Records show the law firm received a financial lifeline during the pandemic, obtaining more than $3.8 million in loans through the federal Paycheck Protection Program, launched early in the economic crisis. Patrick Semrad, 44, said the COVID-19 pandemic ravaged the consumer bankruptcy sector, forcing the firm to make the tough decision to file for chapter 11 earlier this year. The law firm went from filing 1,112 cases in June 2019 to filing 486 cases in June 2021, he said. Last month, it filed 632 cases.
