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Business booming for bankruptcy lawyers

Posted February 13, 2009
Updated March 9, 2009

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— A flood of foreclosures and a rising tide of unemployment have left bankruptcy lawyers across the region awash in business.

But the attorneys say the extra work is heartbreaking.

Bankruptcy ad Bankruptcies: Work lawyers don't want

"It scares me," said Bruce Allen, who has filed bankruptcy claims for clients for 20 years. "I've seen people who had factory jobs who are totally out of work, and they're on unemployment, wondering where they are going to turn."

Eighty-nine bankruptcy petitions from Cumberland County were filed with the U.S. Bankruptcy Court in December, compared with 65 a year earlier. Bankruptcies were up across eastern North Carolina during the same period, from 667 to 933.

The Fayetteville branch of The Law Offices of John T. Orcutt processed 65 individual bankruptcy petitions in January, paralegal Annie Kosko said. A year ago, the office handled 40 bankruptcies, she said.

On Friday morning, a dozen people walked into the office, hoping to find relief from mounting debts.

"Sometimes, I almost feel guilty I have a job," Kosko said.

Unemployment in Cumberland County rose from 7.5 to 7.9 percent in December, according to the state Employment Security Commission. Almost 2,000 county residents began receiving unemployment benefits that month, though that was lower than the 2,900 who filed their initial benefits claims in November.

For many people struggling to pay their bills, bankruptcy is their last hope. Some people have taken pay cuts to save their jobs but are left with income that doesn't match their expenses, attorneys said.

"Sometimes, I see people (whose situations) are so severe that bankruptcy can't help," Allen said.

Kosko said every day brings new emotion as she tries to help clients.

"Some of them cry; some of them are angry," she said. "Some days, it's fantastic because you can help everybody you see, and it's wonderful – you feel great. Some days, it's not."


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  • jr1brown Feb 13, 2009

    Affirmative, how is it that YOU would have to pay for folks filing bankruptcy for whatever reason? I'm sorry I didn't know you had such an influence on our economy and had so much money.
    You obviously think you are a lot smarter than you really are, and it's easy to realize that from your post name.

  • affirmativediversity Feb 13, 2009

    I would have liked more details...like if there is a dramatic change on the kind of debt people wish to write off

    or (in the words of Rev. Wright...lol) is it the "chickens coming home to roost?

    for clarification...if more people are filing bankruptcy because they can no longer pay "reasonable" debt,(ie. a basic mortgage, a reasonable vehicle loan, maybe one or two credit cards and of course the ever popular medical expenses) then this would, INDEED, be very, very troubling

    IF, on the other hand
    these people are loaded down with unreasonable debt (ie. jewelry stores, furniture stores, huge luxury cars) that in reality they couldn't have ever hope to actually pay...then SORRY...I'm getting pretty darned tired of being asked to pay for their excesses in every way imaginable! They need to take their medicine!

    What's the answer WRAL...maybe a little more "journalism" would have helped!

  • ifcdirector Feb 13, 2009

    Government is and forever shall be lawyers helping keep themselves rich while helping other lawyers get rich.