The lead bankruptcy attorney for Circuit City Stores Inc. charges $945 per hour, or $15.75 a minute.The restructuring firm supervising the dismantling of LandAmerica Financial Group Inc. routinely bills the bankrupt company about $1 million a month for its services, including between $60,000 and $70,000 a month for travel and lodging expenses.Lawyers, accountants, analysts and others had billed more than $65 million in professional fees and expenses to both companies from last November, when Circuit City and LandAmerica filed for bankruptcy protection, through the end of August.Welcome to the business of bankruptcy, where lawyers and other professionals charge tens of millions of dollars in fees and get paid first while creditors may recover only pennies on the dollar of what they are owed.Did you catch that - they all get paid before any creditors - and, the creditors may only recover pennies on the dollar?
Business Credit Insurance Brokers of the United States
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