Lehman bankruptcy fees reach $1 billion

According to recently release figures, the Lehman Brothers bankruptcy has produced over $1 billion in fees. These fees have been paid out to advisers, lawyers, and bankers over the past two years.

On average, the financial firm has paid over $40 million a month since their September, 2008 collapse.

At the time of the firm’s collapse, it was running $639 billion in assets. Experts claim that the fees are coming at the expense of creditors seeking to be repaid, while rising daily.

“If you are a creditor, every dollar that is going to (debtor) counsel is a dollar not going to a creditor,” said Stephen French, a managing partner at Legalbill, a Tennessee company that advises companies on managing their legal bills.

Alvarez & Marsal, the advisory firm running Lehman in the United States, has said that his firm’s work has improved recovery for creditors by more than $5 billion and that these increases justify the fees of hiring a huge number of advisers and accountants not only in the United States, but to close up shops throughout Asia and Europe.

Lehman expects to emerge from bankruptcy during the first quarter of 2011. Then, it can start paying back creditors.

If you or a loved one is considering filing for bankruptcy, you need experienced legal representation on your side. Contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC by calling (205) 324-4000 today.

Paula GreenwayPaula Greenway

Paula Greenway is a native of Birmingham and has focused her practice on consumer bankruptcy since 1996. She is licensed to practice law in all jurisdictions throughout the State of Alabama. Paula has handled over 5,000 bankruptcy cases ranging in complexity throughout her career and prides herself on being able to come up with creative solutions to her clients’ financial issues.