Bankruptcy is a viable way to manage debt and get a fresh financial start in life. This option is available to both individuals and businesses. Most recently one of Michigan’s largest bankruptcy law firms now finds itself in bankruptcy as a result of a business dispute between former partners.
Frego and Associates filed for Chapter 11 bankruptcy in the hopes of lowering many of its operating costs. The firm seeks to lower advertising costs and renegotiate payments that are being made to former business partner James Frego. The former firm, Frego & Brodsky, dissolved after a dispute between partners James Frego and Dennis Brodskly. Brodsky paid over $100,000 for a half interest in the firm. Brodskly alleges that Frego unequally distributed the work and spent a lot of the firm’s money. He also alleges that he was unfairly ousted from the firm in 2009. The receiver for Frego & Brodsky are seeking over $200,000 in fees paid to Frego’s new firm for business that originated with the former law firm.
Chapter 11 bankruptcy is not available to individuals who are in need of financial relief. However, there are other legal options that are available, in the form of Chapter 7 or Chapter 13 bankruptcy. Depending on the financial status of the applicant, one of these options can be used to get debt relief.
To learn more about all legal options concerning bankruptcy, potential applicants should seek the counsel of a qualified bankruptcy attorney. An attorney can help individuals get their credit card debt and medical bills under control so that individuals can leave free from creditor harassment.
Source: www.abajournal.com, “Bankruptcy law firm files for bankruptcy,” Debra Cassens Weiss, January 23, 2014.