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LegalZoom Moves Involuntary Chapter 7 against Jacoby & Meyers Bankruptcy LLP
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Creditors of Jacoby & Meyers Bankruptcy LLP with more than $1 million in claims have teamed up to liquidate the defunct law firm once touted as the “largest consolidation of consumer law firms in U.S. history.” According to a petition under an involuntary Chapter 7 proceeding against the firm made in the U.S. Bankruptcy Court in Manhattan, petitioners want to appoint a trustee who will then sell off the firm’s assets and pay the creditors.

Jacoby & Meyers Bankruptcy LLP was created in 2012 by a merger between Jacoby & Meyers LLC and Macey Bankruptcy Law PC. Once, the law firm had 135 offices in USA with more than 600 non-attorney staff and about 310 lawyers on its roll.

  
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The bankruptcy law firm apparently stopped operating in December, assigned a trustee and transferred its assets to trusts. The last post on the Facebook page of the firm was on January 30, and if you visit jacobymeyersbankruptcy.com you will be greeted by the following announcement followed by a list of law firms: “If you are an active client of Jacoby Meyers Bankruptcy your client file has been transferred to the below attorney’s office. You should have received notice via email, regular mail as well as certified mail. The attorneys below have agreed to take on your file and will honor all fees paid, terms and conditions as outlined in your retainer agreement with our firm. If you have any questions please call the attorney’s office associated with your location below.”

Creditors of the law firm claim there were innumerable issues regarding the assignment of assets and debts have not been paid in time. The creditors also claim there are significant concerns regarding the protection of clients whose cases would be and may have been transferred to new lawyers.

The creditors including LegalZoom.com Inc. and attorneys’ offices stated in their petition that. “Liquidation must be done by an independent bankruptcy trustee in a transparent proceeding under the sound supervision of this court.”

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