Dear bloggers:
The Chicago Tribune published the following article about how eager law students were in discovering whether they had passed the bar exam. I still remember almost 24 years ago when I was in the same position. However, I wonder how many of these new lawyers will consider becoming bankruptcy attorneys. Bankruptcy is booming and some say there is room for more bankruptcy attorneys.
The Tribune reports as follows:
"The results for the Illinois bar exam were released Thursday and for the second year in a row lawyers complained that there were delays in learning whether they passed.
The lawyers said they had problems logging into a web site run by the Illinois Board of Admissions to the Bar, which administers the exam, that posted the scores. They tried logging in so many times that the agency's Web address, www.ibaby.org, was one of the most searched terms on Google yesterday. Yes, I know, the acronym sounds like an application for the iPhone.
Lawrence Hill, who serves on the board of the organization, acknowledged that some of the test takers experienced difficulties with the web site. But they have no one to blame but themselves, Hill said.
He explained that the applicants were supposed to wait until they received an email that there score was posted on the Web site before logging in. Instead, many overanxious applicants checked the Web site at the same time, once word started filtering that some had received their scores. The influx made it harder for those who had received email notification to check their results.
"Everyone who has gotten a message to check their scores has received them," Hill said Thursday evening. "But some applicants are not using the system in the way it was designed to be used."
About 2,700 people took the bar exam in July.
The state board decided to release the results in small increments to avoid a repeat of last year when its Web site crashed because it could not handle the influx of people. The agency also quadrupled the number of servers that support its Web site, Hill said.
Every lawyer says that waiting to see whether you passed the bar exam is one of the most tense periods in your life but how hard is it to follow directions?"
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Thursday, October 8, 2009
Wednesday, October 7, 2009
Bankruptcy May Be the Answer for Small and Family Businesses
Fellow bloggers:
Many small and family owned businesses are experiencing financial problems. Some of these businesses are staring at bankruptcy. These businesses would never have dreamed that bankruptcy was a possibility prior to the recession. But, now, their dreams could be shattered. Bankruptcy is looming.
Consequently, I though you would be interested in the following article written by DANA MATTIOLI of the Wall Street Journal:
"Siblings Georgia, Jimmy and John Roussos have spent most of their lives working in the kitchen of the restaurant their father opened in 1954. The eatery managed to survive a hurricane and other setbacks, but it wasn't until this August that the recession took its toll, forcing Roussos Restaurant in Daphne, Ala., to permanently shut its doors.
After months of slow sales, family businesses are being forced to close, ending legacies and leaving behind a wake of sad customers and loyal employees. "Some family businesses that were just hanging on have said it's time to get out," says Dann Van Der Vliet, director of the Vermont Family Business Initiative at the University of Vermont.
An estimated 90% of U.S. businesses are family-owned or controlled, from traditional small businesses to a third of Fortune 500 firms, according to the Small Business Administration. Hard data are hard to come by on the number of small family-controlled enterprises that have closed in this recession, but experts say the prolonged slump has hurt a significant number. About 4.3 million businesses with 19 or fewer employees closed during the fourth quarter of 2007 through the fourth quarter of 2008, according to the Bureau of Labor Statistics.
These businesses, often steeped in tradition and not as flexible to change, tend not to have formal plans in place to respond to crisis. "They've seen reductions in top line revenue that they just can't react fast enough to," says Beth Wood, assistant vice president of market development and family-business advocacy with MassMutual. Problems securing credit in this recession have also prevented some family businesses from getting the funding they need, she adds.
The economic downturn is really just the latest setback for family-run businesses. In the 1970s and '80s, exorbitant income taxes and estate taxes forced many to close, says John Ward, professor of family enterprise with Northwestern University's Kellogg School of Management. Before that, the anti-establishment movement during and after the Vietnam War made many children reluctant to take over the family business, he says.
Jimmy Roussos, 60 years old, says the financial meltdown last fall caused business at Roussos Restaurant to drop in half practically overnight.
The restaurant, which claims to have served the likes of Elvis Presley and Jimmy Buffett, began offering specials to help drive traffic, but the attempts ate into its bottom line. "You had to discount so heavily to get someone in the door that it just wasn't profitable anymore," says Georgia Roussos, 53.
After months of being unprofitable, the siblings made the difficult decision to close shop, leaving their 55 employees -- many who have worked there for more than 35 years -- out of work. The siblings say it was emotional not only for them, but for their workers and loyal customers.
Harry W. Schwartz Bookshops, a family-run chain of four small bookstores in Milwaukee, had to shut its doors in March. The shops, started in 1927, were a fixture in the community, known for author visits, children's story time and ability to bud romances. Carol Grossmeyer, former president of the shops, says she met her late husband David Schwartz at one of the locations when she applied for a job and he hired her.
Mr. Schwartz passed away in 2004 and Ms. Grossmeyer eventually took over. Already the book business was suffering, with customers gravitating toward online orders and larger chains eating into sales. The economy's rapid decline in the last year put an even bigger dent in sales, 5%. and Ms. Grossmeyer says she realized she couldn't remain in business.
"It was really hard because you're closing your family legacy," says Ms. Grossmeyer. "I cried for a month before it happened and a month after."
To be sure, there are many family businesses that are holding their own, better equipped to survive a downturn because they usually hold less debt than public companies and can turn to older family members who have navigated other recessions.
But for those who couldn't shake the current lapse, losing a legacy is particularly difficult.
"To shutter an enterprise that often has a family's name above the door is a horrible experience to go through; there is grief and loss associated with it," says Drew Mendoza, managing principle of The Family Business Consulting Group Inc.
It can also be a curveball for would-be heirs. Austin Blankenbeckler, 27, grew up on his family's car lot in Waxahachie, Texas. As a child he washed cars at Carlisle Chevrolet and always expected he would one day run the business like his grandfather and father. Now, the General Motors Co. dealership that has been around since 1926 and managed to survive the Great Depression and World War II, is faced with closing.
Mr. Blankenbeckler worries about his career options. "I actually never really thought about doing anything else," he says."
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Many small and family owned businesses are experiencing financial problems. Some of these businesses are staring at bankruptcy. These businesses would never have dreamed that bankruptcy was a possibility prior to the recession. But, now, their dreams could be shattered. Bankruptcy is looming.
Consequently, I though you would be interested in the following article written by DANA MATTIOLI of the Wall Street Journal:
"Siblings Georgia, Jimmy and John Roussos have spent most of their lives working in the kitchen of the restaurant their father opened in 1954. The eatery managed to survive a hurricane and other setbacks, but it wasn't until this August that the recession took its toll, forcing Roussos Restaurant in Daphne, Ala., to permanently shut its doors.
After months of slow sales, family businesses are being forced to close, ending legacies and leaving behind a wake of sad customers and loyal employees. "Some family businesses that were just hanging on have said it's time to get out," says Dann Van Der Vliet, director of the Vermont Family Business Initiative at the University of Vermont.
An estimated 90% of U.S. businesses are family-owned or controlled, from traditional small businesses to a third of Fortune 500 firms, according to the Small Business Administration. Hard data are hard to come by on the number of small family-controlled enterprises that have closed in this recession, but experts say the prolonged slump has hurt a significant number. About 4.3 million businesses with 19 or fewer employees closed during the fourth quarter of 2007 through the fourth quarter of 2008, according to the Bureau of Labor Statistics.
These businesses, often steeped in tradition and not as flexible to change, tend not to have formal plans in place to respond to crisis. "They've seen reductions in top line revenue that they just can't react fast enough to," says Beth Wood, assistant vice president of market development and family-business advocacy with MassMutual. Problems securing credit in this recession have also prevented some family businesses from getting the funding they need, she adds.
The economic downturn is really just the latest setback for family-run businesses. In the 1970s and '80s, exorbitant income taxes and estate taxes forced many to close, says John Ward, professor of family enterprise with Northwestern University's Kellogg School of Management. Before that, the anti-establishment movement during and after the Vietnam War made many children reluctant to take over the family business, he says.
Jimmy Roussos, 60 years old, says the financial meltdown last fall caused business at Roussos Restaurant to drop in half practically overnight.
The restaurant, which claims to have served the likes of Elvis Presley and Jimmy Buffett, began offering specials to help drive traffic, but the attempts ate into its bottom line. "You had to discount so heavily to get someone in the door that it just wasn't profitable anymore," says Georgia Roussos, 53.
After months of being unprofitable, the siblings made the difficult decision to close shop, leaving their 55 employees -- many who have worked there for more than 35 years -- out of work. The siblings say it was emotional not only for them, but for their workers and loyal customers.
Harry W. Schwartz Bookshops, a family-run chain of four small bookstores in Milwaukee, had to shut its doors in March. The shops, started in 1927, were a fixture in the community, known for author visits, children's story time and ability to bud romances. Carol Grossmeyer, former president of the shops, says she met her late husband David Schwartz at one of the locations when she applied for a job and he hired her.
Mr. Schwartz passed away in 2004 and Ms. Grossmeyer eventually took over. Already the book business was suffering, with customers gravitating toward online orders and larger chains eating into sales. The economy's rapid decline in the last year put an even bigger dent in sales, 5%. and Ms. Grossmeyer says she realized she couldn't remain in business.
"It was really hard because you're closing your family legacy," says Ms. Grossmeyer. "I cried for a month before it happened and a month after."
To be sure, there are many family businesses that are holding their own, better equipped to survive a downturn because they usually hold less debt than public companies and can turn to older family members who have navigated other recessions.
But for those who couldn't shake the current lapse, losing a legacy is particularly difficult.
"To shutter an enterprise that often has a family's name above the door is a horrible experience to go through; there is grief and loss associated with it," says Drew Mendoza, managing principle of The Family Business Consulting Group Inc.
It can also be a curveball for would-be heirs. Austin Blankenbeckler, 27, grew up on his family's car lot in Waxahachie, Texas. As a child he washed cars at Carlisle Chevrolet and always expected he would one day run the business like his grandfather and father. Now, the General Motors Co. dealership that has been around since 1926 and managed to survive the Great Depression and World War II, is faced with closing.
Mr. Blankenbeckler worries about his career options. "I actually never really thought about doing anything else," he says."
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Tuesday, October 6, 2009
Compensation for Young Attorneys Changed by Recession
Here is an interesting article from Tamara Loomis of The American Lawyer. Loomis reports as follows:
"Believe it: The worst economic downturn since the Great Depression has hit law firms hard. Historically, the legal sector has weathered recessions better than many other sectors have, buoyed by the attendant surges in litigation and bankruptcy work. That's what's happened, for instance, amid the wave of corporate scandals -- the so-called Enron era -- that followed the bursting of the high-tech bubble. Not this time. Big firms are hurting, their profit margins squeezed by both sagging demand and record-high expenses. The result: the now familiar litany of mass layoffs, salary freezes and cuts, deferred start dates for first-year associates, and canceled or downsized summer programs.
Given all that, the $160,000 question now is, what happens when the economy recovers? Will things go back to how they were?
The answer, according to law firm and law school leaders, is no. They say that the recession and events leading up to it have permanently changed the way business is done in the legal industry. The recent boom -- with its eye-popping billing rates of $1,000 per hour, first-year associate salaries of $160,000, and bloated ranks of junior associates -- is over. In its place, for now at least, is a new era in which law firms are expected to focus on being more cost-efficient. For the law student looking to join an Am Law 100 firm, that means smaller classes, more competition and lower pay.
The Am Law 100 itself is looking less monolithic these days. While some firms haven't dropped the $160,000 starting salary, and won't, others, even the largest and most profitable, are set to forge a new path. At some firms, starting salaries, associate pay structures, training programs and promotion schemes are already starting to split from the pack. Those trends will continue postrecession, says James Leipold, the executive director of NALP. "Firms today are less worried about what their rivals are doing," he says. "I don't think everything is going to coalesce around a new normal."
To understand what's going on, it's worth going back in time. The past 17 years were a period of unprecedented prosperity for the industry. Toward the end of that era, law firm expenses -- driven by pricey real estate and rising associate salaries -- rose by an average of 10.1 percent each year from 2000 to 2007, according to the 2008 Annual Survey of Law Firm Financial Performance by Citi Private Bank.
Firms didn't mind writing the checks when demand -- measured by gross billable hours -- was exploding. But then demand began to dry up. On the transactional side, the falloff in work began with the unfolding of the credit market crisis at the start of 2008. On the litigation side, it's been building for a few years, with clients increasingly pushing for their firms to outsource work and manage matters better. A case that demanded eight lawyers a decade ago now may pull in half as many, because clients don't want to pay for associates to wade through documents, says Wally Martinez, managing partner of Hunton & Williams. Instead, many clients generally want routine work handled by contract lawyers, he says.
Corporate counsel -- feeling internal pressure to cut costs -- are also getting stingier about paying for litigation that isn't "bet-the-company." And budget management software is helping in-house lawyers review bills and track matters more closely than ever before.
The recession has accelerated these trends, Leipold says. Desperate to stop hemorrhaging profits, law firms have resorted to layoffs -- according to The American Lawyer, the number stands at more than 2,900 associates since the start of 2008. Another sign of contraction in the industry: smaller summer classes. Among the 131 firms that responded to the The American Lawyer's summer hiring survey, the average class size was 20 percent smaller this year than it was last year, dropping from about 58 to 45. And of those summers who have gotten offers from Am Law 100 firms, all but a handful are looking at delayed start dates.
Most firms have also cut back sharply on on-campus recruiting for next summer; at least nine firms, including Morgan, Lewis & Bockius; Pillsbury Winthrop Shaw Pittman; and Milbank Tweed Hadley & McCloy, have canceled their 2010 summer programs in all or some offices. Many associates still working have seen their compensation frozen or cut, typically by about 10 percent, or from $160,000 to $145,000 for first-year associates in major cities. Even when the economy picks up, don't expect law firms to return anytime soon to prerecession associate staffing levels. The work that's been outsourced isn't coming back, Martinez says.
As for salaries, "Not everyone is going to retreat from $160,000," Leipold says, adding that "over the long haul, attorney salaries will continue to drift upward." But in the short term, Leipold doesn't think the salary structure that firms had moved to before the recession is supportable: "Clients are saying they are paying too much, and in particular too much for the newest talent, who are not fully trained lawyers."
To make matters worse, last year's recruiting season produced a very high yield. At the time, firms didn't understand the depth of the recession, says David Van Zandt, dean of Northwestern Law School. As a result, their summer classes are much bigger than they need, he says. With far fewer spots to fill, firms have become choosier. "During the boom years, firms just needed bodies," he says. "Now they're looking for students who not only can draft briefs and review documents but can also work well with clients and other lawyers." Van Zandt says firms are also starting to look more closely at a candidate's basic project-management and communication skills. This means that students who try to tailor their abilities through class choices, internships and work experience can help to make themselves more attractive to prospective employers, he says.
Law firms are also starting to take a more rigorous approach to their end of the recruiting process. "We're seeing better-prepared interviewers, more senior people" coming on campus, says Bruce Elvin, director of career and professional development at Duke University Law School.
As for the interview itself, it's no longer about whether you like the same sports teams, at least not at places like Vinson & Elkins and McKenna Long & Aldridge. These firms are using behavioral interviewing techniques, in conjunction with law school rankings and grade point averages, to evaluate candidates. The idea behind behavioral interviewing -- used by consulting and other professional service firms for decades but fairly new to the legal industry -- is that the best predictor of future performance is past performance in specific situations. Interviewers are trained to ask questions such as "Tell me about a time when you had a setback and how you dealt with it," or "Give me an example of a time when you had to make a split-second decision." Vinson & Elkins hiring partner Thomas Leatherbury predicts that behavioral interviewing will be more common in the years to come. "It's much more substantive," he says.
Even in traditional interviews, Elvin says, law students can and should adopt a behavioral focus: "Students can benefit themselves by talking about challenges they've overcome, decisions they've made. It shows you are taking ownership."
Beyond making the right impression, students armed with certain skills will fare better than others, law school and law firm leaders say. The most sought-after students are those with a joint J.D./MBA degree, Van Zandt says. With four years of business and legal training, as well as an average of four years in the workforce, "these graduates have had no problem getting a job in this market," he says. (Northwestern actually prefers students who have gained work experience before entering law school.)
Students with specialized training can also tap into at least two hot practice areas: financial regulation and energy law. Sweeping changes in the first area mean that young lawyers who catch that wave, via jobs in or outside of government, will be well positioned for law firm jobs, says Arnold & Porter managing partner Thomas Milch. Energy law, propelled by climate change issues, is also booming -- good news for law students with a background in science, he says.
Even students who don't land an offer in the current recruiting season need not despair. "Speed is not necessarily anyone's friend in this economic cycle," Vinson & Elkins's Leatherbury says. At least two firms -- Orrick Herrington & Sutcliffe and DLA Piper -- skipped the August recruiting season, and plan to visit campuses in November instead. Some firms may even come back in the spring for a second recruiting cycle if they decide to increase the number of summer associates they'd like to hire, Leatherbury says. But he doesn't anticipate any permanent shifts in the recruiting season, at least for now.
Leatherbury would actually like to see recruiting pushed back to later in the school year, given the difficulties of predicting hiring needs two years into the future. In April, Leatherbury drafted a plan asking law schools to delay on-campus recruiting, but he says the idea didn't go over so well. "The general reaction was that if Harvard moved, then everyone else would move," he says. Harvard Law School did move, but in the wrong direction, in Leatherbury's view. Its recruiting program, which had been in late September, now takes place at the end of August, along with those of most other top law schools.
Once in the door, depending on where they land, students may well face an entirely new approach to associate pay, training and advancement. A handful of early adopters are abandoning lockstep compensation, in which each associate class is paid the same base salary, in favor of performance-based pay programs, in which associates are promoted -- and their billing rates raised -- as they master a range of competencies and skills. The pioneer of performance-based pay, the firm that Husch Blackwell Sanders grew out of, has used it for close to a decade. Other recent converts include McKenna Long & Aldridge, which switched over in the fall of 2007, and Howrey, which put the final touches on its new program in January 2009.
In the last few months, Morgan, Lewis & Bockius; Orrick Herrington & Sutcliffe; DLA Piper; and Sonnenschein Nath & Rosenthal all announced plans to replace lockstep associate compensation with performance-based programs. Laura Saklad, Orrick's chief lawyer development officer, says the firm's new pay program "recognizes that not all associates advance at the same pace, tenure is not a proxy for advancing skill, and clients should not bear the cost of training associates. In the end, our goal is to deploy the right lawyer or professional for the right task at the right cost."
Expect many more firms to follow suit. Peter Sloan, a partner in the Kansas City, Mo., office of Husch Blackwell who wrote the bible of performance-based associate pay, "From Lockstep to Levels, Classes to Competencies," says firms like McKenna and Howrey are just "the tip of the iceberg." After years of being virtually ignored by his industry peers, Sloan sees a surge of interest in merit-based pay. In July he led an online seminar on the subject that was cohosted by NALP and the American Law Institute-American Bar Association. The seminar drew more than 200 attendees from law firms, law schools and consulting firms.
Sloan says he has also been "quietly contacted" by firms that are actively planning to switch to performance-based pay, and hears "rumors" that other firms are telling associates that they, too, are moving to such systems. "This economic climate sends a clear signal that business as usual may no longer be a viable strategy," Sloan says. "I think we are close to a tipping point, with more and more firms taking a hard look at how they manage associates. Many of those firms may move to a merit-based compensation system."
(Before you throw in your lot with a pay-for-performance firm, you should know that merit-based pay does not immunize associates against layoffs in a recession: So far this year, Husch Blackwell has laid off 41 associates.)
Pay-for-performance programs vary but typically feature four or five performance-based tracks or levels along which associates advance. Compensation, billing rates, and progress toward partnership are tied to levels of competencies, rather than hiring class. Associates can also expect mutually agreed-upon goals set in advance, quarterly feedback and supervising attorneys who have actually been trained in mentoring and feedback. Jennifer Queen, McKenna's chief recruitment and development officer, says that with a merit-based pay system, associates know in advance what they need to do to make it. "The secret to success isn't a secret anymore," Queen says. She says clients like performance-based programs too. For one, it's how they pay their professionals. Plus, they know they are getting their money's worth, since an associate's billing rate is tied directly to his or her performance level.
Despite the merit-based pay's advantages, even its fans expect many firms to stick with the tried-and-true, at least for now. Lockstep compensation is familiar and easy -- two big selling points. "Just because you're breathing and it's another year, you get promoted," says McKenna's Queen. By comparison, a merit-based system can be quite labor-intensive, since moving from one level to the next requires an in-depth performance review.
Look to Howrey for another upheaval in the once-predictable world of associate training and advancement. Starting this fall, Howrey's first- and second-years will take part in a new apprenticeship program, going to classes, working on pro bono projects and shadowing partners at depositions, court appearances, client meetings and the like. The billable-hour requirement for participants has been cut from 1,950 to 700 hours. The program's final three months is a secondment, in which associates are embedded at client sites at a reduced billing rate. Despite a sharply lower starting salary of $100,000 (plus a $25,000 bonus earmarked, in most cases, for making student loan payments), Howrey partner Richard Ripley says all 23 associates who began in September signed on.
Will others follow suit? The program certainly has its appeal in a time when more and more clients refuse to let junior associates work on their matters. Ripley says "clients are thrilled with it, since we're giving our young associates the skills they need to bring value to our matters." Philadelphia's Drinker Biddle & Reath and Louisville, Ky.,'s Frost Brown Todd are also launching apprenticeship programs this fall.
Where does it leave today's law students? No question, they are headed into a job market sure to present significant challenges for some time to come. But these future lawyers may also be the first in years to have real choices, as even the largest firms begin to diverge on pay and promotions. As President Barack Obama's chief of staff, Rahm Emanuel, has said, a crisis presents opportunities "to do things you think you could not do before." Easy for him to say. He has a job. "
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
"Believe it: The worst economic downturn since the Great Depression has hit law firms hard. Historically, the legal sector has weathered recessions better than many other sectors have, buoyed by the attendant surges in litigation and bankruptcy work. That's what's happened, for instance, amid the wave of corporate scandals -- the so-called Enron era -- that followed the bursting of the high-tech bubble. Not this time. Big firms are hurting, their profit margins squeezed by both sagging demand and record-high expenses. The result: the now familiar litany of mass layoffs, salary freezes and cuts, deferred start dates for first-year associates, and canceled or downsized summer programs.
Given all that, the $160,000 question now is, what happens when the economy recovers? Will things go back to how they were?
The answer, according to law firm and law school leaders, is no. They say that the recession and events leading up to it have permanently changed the way business is done in the legal industry. The recent boom -- with its eye-popping billing rates of $1,000 per hour, first-year associate salaries of $160,000, and bloated ranks of junior associates -- is over. In its place, for now at least, is a new era in which law firms are expected to focus on being more cost-efficient. For the law student looking to join an Am Law 100 firm, that means smaller classes, more competition and lower pay.
The Am Law 100 itself is looking less monolithic these days. While some firms haven't dropped the $160,000 starting salary, and won't, others, even the largest and most profitable, are set to forge a new path. At some firms, starting salaries, associate pay structures, training programs and promotion schemes are already starting to split from the pack. Those trends will continue postrecession, says James Leipold, the executive director of NALP. "Firms today are less worried about what their rivals are doing," he says. "I don't think everything is going to coalesce around a new normal."
To understand what's going on, it's worth going back in time. The past 17 years were a period of unprecedented prosperity for the industry. Toward the end of that era, law firm expenses -- driven by pricey real estate and rising associate salaries -- rose by an average of 10.1 percent each year from 2000 to 2007, according to the 2008 Annual Survey of Law Firm Financial Performance by Citi Private Bank.
Firms didn't mind writing the checks when demand -- measured by gross billable hours -- was exploding. But then demand began to dry up. On the transactional side, the falloff in work began with the unfolding of the credit market crisis at the start of 2008. On the litigation side, it's been building for a few years, with clients increasingly pushing for their firms to outsource work and manage matters better. A case that demanded eight lawyers a decade ago now may pull in half as many, because clients don't want to pay for associates to wade through documents, says Wally Martinez, managing partner of Hunton & Williams. Instead, many clients generally want routine work handled by contract lawyers, he says.
Corporate counsel -- feeling internal pressure to cut costs -- are also getting stingier about paying for litigation that isn't "bet-the-company." And budget management software is helping in-house lawyers review bills and track matters more closely than ever before.
The recession has accelerated these trends, Leipold says. Desperate to stop hemorrhaging profits, law firms have resorted to layoffs -- according to The American Lawyer, the number stands at more than 2,900 associates since the start of 2008. Another sign of contraction in the industry: smaller summer classes. Among the 131 firms that responded to the The American Lawyer's summer hiring survey, the average class size was 20 percent smaller this year than it was last year, dropping from about 58 to 45. And of those summers who have gotten offers from Am Law 100 firms, all but a handful are looking at delayed start dates.
Most firms have also cut back sharply on on-campus recruiting for next summer; at least nine firms, including Morgan, Lewis & Bockius; Pillsbury Winthrop Shaw Pittman; and Milbank Tweed Hadley & McCloy, have canceled their 2010 summer programs in all or some offices. Many associates still working have seen their compensation frozen or cut, typically by about 10 percent, or from $160,000 to $145,000 for first-year associates in major cities. Even when the economy picks up, don't expect law firms to return anytime soon to prerecession associate staffing levels. The work that's been outsourced isn't coming back, Martinez says.
As for salaries, "Not everyone is going to retreat from $160,000," Leipold says, adding that "over the long haul, attorney salaries will continue to drift upward." But in the short term, Leipold doesn't think the salary structure that firms had moved to before the recession is supportable: "Clients are saying they are paying too much, and in particular too much for the newest talent, who are not fully trained lawyers."
To make matters worse, last year's recruiting season produced a very high yield. At the time, firms didn't understand the depth of the recession, says David Van Zandt, dean of Northwestern Law School. As a result, their summer classes are much bigger than they need, he says. With far fewer spots to fill, firms have become choosier. "During the boom years, firms just needed bodies," he says. "Now they're looking for students who not only can draft briefs and review documents but can also work well with clients and other lawyers." Van Zandt says firms are also starting to look more closely at a candidate's basic project-management and communication skills. This means that students who try to tailor their abilities through class choices, internships and work experience can help to make themselves more attractive to prospective employers, he says.
Law firms are also starting to take a more rigorous approach to their end of the recruiting process. "We're seeing better-prepared interviewers, more senior people" coming on campus, says Bruce Elvin, director of career and professional development at Duke University Law School.
As for the interview itself, it's no longer about whether you like the same sports teams, at least not at places like Vinson & Elkins and McKenna Long & Aldridge. These firms are using behavioral interviewing techniques, in conjunction with law school rankings and grade point averages, to evaluate candidates. The idea behind behavioral interviewing -- used by consulting and other professional service firms for decades but fairly new to the legal industry -- is that the best predictor of future performance is past performance in specific situations. Interviewers are trained to ask questions such as "Tell me about a time when you had a setback and how you dealt with it," or "Give me an example of a time when you had to make a split-second decision." Vinson & Elkins hiring partner Thomas Leatherbury predicts that behavioral interviewing will be more common in the years to come. "It's much more substantive," he says.
Even in traditional interviews, Elvin says, law students can and should adopt a behavioral focus: "Students can benefit themselves by talking about challenges they've overcome, decisions they've made. It shows you are taking ownership."
Beyond making the right impression, students armed with certain skills will fare better than others, law school and law firm leaders say. The most sought-after students are those with a joint J.D./MBA degree, Van Zandt says. With four years of business and legal training, as well as an average of four years in the workforce, "these graduates have had no problem getting a job in this market," he says. (Northwestern actually prefers students who have gained work experience before entering law school.)
Students with specialized training can also tap into at least two hot practice areas: financial regulation and energy law. Sweeping changes in the first area mean that young lawyers who catch that wave, via jobs in or outside of government, will be well positioned for law firm jobs, says Arnold & Porter managing partner Thomas Milch. Energy law, propelled by climate change issues, is also booming -- good news for law students with a background in science, he says.
Even students who don't land an offer in the current recruiting season need not despair. "Speed is not necessarily anyone's friend in this economic cycle," Vinson & Elkins's Leatherbury says. At least two firms -- Orrick Herrington & Sutcliffe and DLA Piper -- skipped the August recruiting season, and plan to visit campuses in November instead. Some firms may even come back in the spring for a second recruiting cycle if they decide to increase the number of summer associates they'd like to hire, Leatherbury says. But he doesn't anticipate any permanent shifts in the recruiting season, at least for now.
Leatherbury would actually like to see recruiting pushed back to later in the school year, given the difficulties of predicting hiring needs two years into the future. In April, Leatherbury drafted a plan asking law schools to delay on-campus recruiting, but he says the idea didn't go over so well. "The general reaction was that if Harvard moved, then everyone else would move," he says. Harvard Law School did move, but in the wrong direction, in Leatherbury's view. Its recruiting program, which had been in late September, now takes place at the end of August, along with those of most other top law schools.
Once in the door, depending on where they land, students may well face an entirely new approach to associate pay, training and advancement. A handful of early adopters are abandoning lockstep compensation, in which each associate class is paid the same base salary, in favor of performance-based pay programs, in which associates are promoted -- and their billing rates raised -- as they master a range of competencies and skills. The pioneer of performance-based pay, the firm that Husch Blackwell Sanders grew out of, has used it for close to a decade. Other recent converts include McKenna Long & Aldridge, which switched over in the fall of 2007, and Howrey, which put the final touches on its new program in January 2009.
In the last few months, Morgan, Lewis & Bockius; Orrick Herrington & Sutcliffe; DLA Piper; and Sonnenschein Nath & Rosenthal all announced plans to replace lockstep associate compensation with performance-based programs. Laura Saklad, Orrick's chief lawyer development officer, says the firm's new pay program "recognizes that not all associates advance at the same pace, tenure is not a proxy for advancing skill, and clients should not bear the cost of training associates. In the end, our goal is to deploy the right lawyer or professional for the right task at the right cost."
Expect many more firms to follow suit. Peter Sloan, a partner in the Kansas City, Mo., office of Husch Blackwell who wrote the bible of performance-based associate pay, "From Lockstep to Levels, Classes to Competencies," says firms like McKenna and Howrey are just "the tip of the iceberg." After years of being virtually ignored by his industry peers, Sloan sees a surge of interest in merit-based pay. In July he led an online seminar on the subject that was cohosted by NALP and the American Law Institute-American Bar Association. The seminar drew more than 200 attendees from law firms, law schools and consulting firms.
Sloan says he has also been "quietly contacted" by firms that are actively planning to switch to performance-based pay, and hears "rumors" that other firms are telling associates that they, too, are moving to such systems. "This economic climate sends a clear signal that business as usual may no longer be a viable strategy," Sloan says. "I think we are close to a tipping point, with more and more firms taking a hard look at how they manage associates. Many of those firms may move to a merit-based compensation system."
(Before you throw in your lot with a pay-for-performance firm, you should know that merit-based pay does not immunize associates against layoffs in a recession: So far this year, Husch Blackwell has laid off 41 associates.)
Pay-for-performance programs vary but typically feature four or five performance-based tracks or levels along which associates advance. Compensation, billing rates, and progress toward partnership are tied to levels of competencies, rather than hiring class. Associates can also expect mutually agreed-upon goals set in advance, quarterly feedback and supervising attorneys who have actually been trained in mentoring and feedback. Jennifer Queen, McKenna's chief recruitment and development officer, says that with a merit-based pay system, associates know in advance what they need to do to make it. "The secret to success isn't a secret anymore," Queen says. She says clients like performance-based programs too. For one, it's how they pay their professionals. Plus, they know they are getting their money's worth, since an associate's billing rate is tied directly to his or her performance level.
Despite the merit-based pay's advantages, even its fans expect many firms to stick with the tried-and-true, at least for now. Lockstep compensation is familiar and easy -- two big selling points. "Just because you're breathing and it's another year, you get promoted," says McKenna's Queen. By comparison, a merit-based system can be quite labor-intensive, since moving from one level to the next requires an in-depth performance review.
Look to Howrey for another upheaval in the once-predictable world of associate training and advancement. Starting this fall, Howrey's first- and second-years will take part in a new apprenticeship program, going to classes, working on pro bono projects and shadowing partners at depositions, court appearances, client meetings and the like. The billable-hour requirement for participants has been cut from 1,950 to 700 hours. The program's final three months is a secondment, in which associates are embedded at client sites at a reduced billing rate. Despite a sharply lower starting salary of $100,000 (plus a $25,000 bonus earmarked, in most cases, for making student loan payments), Howrey partner Richard Ripley says all 23 associates who began in September signed on.
Will others follow suit? The program certainly has its appeal in a time when more and more clients refuse to let junior associates work on their matters. Ripley says "clients are thrilled with it, since we're giving our young associates the skills they need to bring value to our matters." Philadelphia's Drinker Biddle & Reath and Louisville, Ky.,'s Frost Brown Todd are also launching apprenticeship programs this fall.
Where does it leave today's law students? No question, they are headed into a job market sure to present significant challenges for some time to come. But these future lawyers may also be the first in years to have real choices, as even the largest firms begin to diverge on pay and promotions. As President Barack Obama's chief of staff, Rahm Emanuel, has said, a crisis presents opportunities "to do things you think you could not do before." Easy for him to say. He has a job. "
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Monday, October 5, 2009
Law School Student Loan Debt Can be Crushing
The average law student who graduated from a private university in 2008 borrowed more than $91,500 on the way to earning that degree, reported by Daily Business Review.
Combine that with leftover undergraduate debt and the shrinking job market, and you've got a surefire recipe for postgraduate financial fright. In a sharp departure from recent history -- when students coming out of even mid-tier schools could count on commanding six-figure starting salaries -- law school debt is now a heavy burden.
"Graduating law students have just spent three years working very hard, and suddenly they're out on their own in very uncertain times," says Beth Kobliner, author of "Get a Financial Life: Personal Finance in Your Twenties and Thirties." "It's easy to feel overwhelmed, but the best thing you can do is to educate yourself about your options."
Law school grads may have a particularly heavy burden to bear but, like other borrowers, they have several options that can help them in this regard. For those with debt worries, here are four questions to ask.
WHO OWNS YOUR LOANS?
Debt is often sold on the secondary market, with the debtor as the income stream. One loan can be sold many times, making it tricky to know who owns yours. Joe Russo, director of student financial strategies at the University of Notre Dame Law School, suggests visiting www.nslds.ed.gov. The U.S. Department of Education database has information on all government-backed loans, the vast majority of student debt. It's the best resource for finding out how much you owe -- and to whom.
ARE YOU READY TO STRETCH?
Once you know who's collecting your payments, ask about loan consolidation and extension. Standard terms call for student loans to be repaid in 120 equal monthly installments over 10 years. These days, there are various payment plans, especially for government-backed loans including Stafford, Perkins and PLUS. Those with more than $30,000 in government-backed debt from college, law school or both can combine balances directly with the department and extend the repayment period to 20 or even 30 years. Monthly payments will be lower, but you'll pay more in interest over the life of the loan.
DOES THE NEW RULE APPLY?
Find out if you qualify for income-based repayment. William Hoye, director of financial aid at Duke University Law School, said this new program for government-backed loans is one that every law grad should know about. The program offers especially attractive repayment terms for those who take public interest jobs.
HOW LOW WILL THEY GO?
If you are unemployed and unable to make any payments, ask your lender for a deferment or forbearance. Both delay payments for a defined period of time and are relatively easy to obtain, especially if you're out of work. But Patricia Christel, a spokesman for Sallie Mae, one of the largest student loan servicers, said a deferment or forbearance should be a last resort. Your lender will tell you what the criteria for qualifying are. Beth Kobliner recommends a deferment, if possible, because the federal government will often subsidize the interest payments. With a loan forbearance, interest continues to accrue. Source: Matt Straquadine of the Daily Business Review.
Building a bankruptcy practice and becoming a bankruptcy lawyer may be the best bet for some law school graduates to survive in the current work environment. Bankruptcy attorneys are in huge demand in a hot market.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Combine that with leftover undergraduate debt and the shrinking job market, and you've got a surefire recipe for postgraduate financial fright. In a sharp departure from recent history -- when students coming out of even mid-tier schools could count on commanding six-figure starting salaries -- law school debt is now a heavy burden.
"Graduating law students have just spent three years working very hard, and suddenly they're out on their own in very uncertain times," says Beth Kobliner, author of "Get a Financial Life: Personal Finance in Your Twenties and Thirties." "It's easy to feel overwhelmed, but the best thing you can do is to educate yourself about your options."
Law school grads may have a particularly heavy burden to bear but, like other borrowers, they have several options that can help them in this regard. For those with debt worries, here are four questions to ask.
WHO OWNS YOUR LOANS?
Debt is often sold on the secondary market, with the debtor as the income stream. One loan can be sold many times, making it tricky to know who owns yours. Joe Russo, director of student financial strategies at the University of Notre Dame Law School, suggests visiting www.nslds.ed.gov. The U.S. Department of Education database has information on all government-backed loans, the vast majority of student debt. It's the best resource for finding out how much you owe -- and to whom.
ARE YOU READY TO STRETCH?
Once you know who's collecting your payments, ask about loan consolidation and extension. Standard terms call for student loans to be repaid in 120 equal monthly installments over 10 years. These days, there are various payment plans, especially for government-backed loans including Stafford, Perkins and PLUS. Those with more than $30,000 in government-backed debt from college, law school or both can combine balances directly with the department and extend the repayment period to 20 or even 30 years. Monthly payments will be lower, but you'll pay more in interest over the life of the loan.
DOES THE NEW RULE APPLY?
Find out if you qualify for income-based repayment. William Hoye, director of financial aid at Duke University Law School, said this new program for government-backed loans is one that every law grad should know about. The program offers especially attractive repayment terms for those who take public interest jobs.
HOW LOW WILL THEY GO?
If you are unemployed and unable to make any payments, ask your lender for a deferment or forbearance. Both delay payments for a defined period of time and are relatively easy to obtain, especially if you're out of work. But Patricia Christel, a spokesman for Sallie Mae, one of the largest student loan servicers, said a deferment or forbearance should be a last resort. Your lender will tell you what the criteria for qualifying are. Beth Kobliner recommends a deferment, if possible, because the federal government will often subsidize the interest payments. With a loan forbearance, interest continues to accrue. Source: Matt Straquadine of the Daily Business Review.
Building a bankruptcy practice and becoming a bankruptcy lawyer may be the best bet for some law school graduates to survive in the current work environment. Bankruptcy attorneys are in huge demand in a hot market.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
2,000 Legal Jobs Lost in September; Bankruptcy Jobs a Bright Spot
Bankruptcy continues to be a hot jobs market with the number of bankruptcy filings surging to over the 1,000,000 mark. Jobs in bankruptcy are offering a source of hope for unemployed young attorneys. Schools like the National Bankruptcy College are offering retraining programs to attorneys who cannot locate a job or need to transition their job skills from fading practice areas to a surging bankruptcy practice.
In contract, the non-bankruptcy legal market is not doing so well. According to a monthly jobs report released Friday by the US Bureau of Labor Statistics, the nation lost 263,000 jobs in September of 2009 as the unemployment rate reached 9.8 percent, highest in 26 years.
The legal sector wasn't spared. When the data is seasonally adjusted, the sector shed another 2,000 jobs. When not seasonally adjusted, the legal industry lost 13,600 jobs, likely a result of the conclusion of most summer associate programs and the return of students to their law schools.
While layoffs at Am Law firms appear to have tapered off from their brisk pace earlier this year, some firms still are thinning their ranks. Reportedly, Chicago-based Sonnenschein Nath & Rosenthal enacted its third round of cuts of the past 18 months, reducing its ranks by 30 attorneys in September, including 10 income partners.
Signs don't point to any major improvements in the employment stats in the legal field for October.
On Friday, The Recorder reported that Colley Godward Kronish was laying off 58 staffers, with the majority of the cuts coming from the secretarial ranks. The layoffs represent nearly 6 percent of the firm's total staff. Cooley previously cut 52 lawyers and 62 staff in January. Source: Brian Baxter of The Am Law Daily blog.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
In contract, the non-bankruptcy legal market is not doing so well. According to a monthly jobs report released Friday by the US Bureau of Labor Statistics, the nation lost 263,000 jobs in September of 2009 as the unemployment rate reached 9.8 percent, highest in 26 years.
The legal sector wasn't spared. When the data is seasonally adjusted, the sector shed another 2,000 jobs. When not seasonally adjusted, the legal industry lost 13,600 jobs, likely a result of the conclusion of most summer associate programs and the return of students to their law schools.
While layoffs at Am Law firms appear to have tapered off from their brisk pace earlier this year, some firms still are thinning their ranks. Reportedly, Chicago-based Sonnenschein Nath & Rosenthal enacted its third round of cuts of the past 18 months, reducing its ranks by 30 attorneys in September, including 10 income partners.
Signs don't point to any major improvements in the employment stats in the legal field for October.
On Friday, The Recorder reported that Colley Godward Kronish was laying off 58 staffers, with the majority of the cuts coming from the secretarial ranks. The layoffs represent nearly 6 percent of the firm's total staff. Cooley previously cut 52 lawyers and 62 staff in January. Source: Brian Baxter of The Am Law Daily blog.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Saturday, October 3, 2009
Unemployment Up To 9.8%; Bankruptcies Up Too
The question is not whether more bankruptcy cases will be filed. Rather, the question is how many more bankruptcy cases will be filed. Some experts are anticipating a huge increase in filings. This year is a bumper year for bankruptcies already. The bad jobs report will only add more fuel to the fire.
The New York Times has reported that after several months in which the American economy flashed tentative signs of improvement, a sobering report on the national job market released on Friday amplified worries that a lengthy period of lean times lay ahead.
The economy shed 263,000 jobs in September, and the unemployment rate edged up to 9.8 percent from 9.7 percent in August, according to the Labor Department’s monthly snapshot of the employment picture.
Though the job market worsened, the pace of deterioration remained markedly slower than during the early months of the year, when roughly 700,000 jobs a month were disappearing. That improvement seems consistent with the widespread belief that the recession has given way to economic growth. Yet the report also buttressed fears that economic expansion would be weak and hesitant, with scarce paychecks and economic anxiety remaining prominent features of American life well into next year.
“This is a weak report,” said Stuart G. Hoffman, chief economist at the PNC Financial Services Group in Pittsburgh. “The rate of job loss has tapered off, but we still haven’t reached the point where businesses are willing to hire.”
The Labor Department also made a preliminary revision in its survey of private employers that indicated the job market shrank even more during the recession. The department disclosed that in March this year the economy held 824,000 fewer jobs than previously reported, making an already bleak picture worse.
The endurance of hard times seems likely to increase pressure on the Obama administration and Congress to consider another dose of spending aimed at stimulating the economy, even as the government grapples with deficits projected by some economists to exceed $10 trillion over the next decade.
Despite a $787 billion stimulus package adopted early this year and aimed in part at shoring up state and local coffers, government jobs slipped by 53,000 in September.
“That’s the budget crunch hitting,” said Dean Baker, co-director of the Center for Economic and Policy Research in Washington. “We’re still losing jobs at a very rapid pace. We’re still looking at an economy with a lot of weakness.”
For millions of unemployed people, the latest data merely confirms something they have come to understand intimately, through the discouraging process of seeking work.
“There’s nothing out there,” said Jerry Lamirande, a technology systems engineer in Amarillo, Tex., who has been without a job since April 2008.
During the technology boom of the late 1990s, Mr. Lamirande, 62, worked for IBM, where he drew a salary of about $130,000. After a layoff seven years ago, he has earned about $70,000 a year as a technology consultant working on contract.
Since the spring, he and his wife have lived on her modest salary as a public school teacher and on hardship withdrawals from his retirement account. He has searched nationwide for his next contract, willing to relocate.
“I’ve got to go where the opportunities are,” he said. “The problem is, there aren’t many opportunities.”
The latest jobs report lent credence to that contention. The unemployment rate continued to inch toward double digits, a level last seen in June 1983. The so-called underemployment rate (which includes people whose hours have been cut, and those working part-time for lack of full-time positions, along with the jobless) reached 17 percent, the highest level since the government began tracking it in 1994.
More jobs were lost last month, at 263,000, than were lost in August, as the Labor Department revised the August decline to 201,000 jobs from the 216,000 it initially reported.
Health care remained a rare bright spot, adding 19,000 jobs in September, but construction jobs slipped by 64,000, manufacturing declined by 51,000 and retail lost 39,000 jobs.
Most economists assume the economy expanded at an annual pace of about three percent from July through September. But debate focuses on the vigor and staying power of the recovery.
Optimists anticipate a robust bounce-back from what now stands as the longest recession since the Great Depression. But most economists expect a sustained slog through high rates of joblessness.
The economic improvement in recent months largely stems from businesses cutting inventories at a slower pace. As some companies begin to rebuild stocks, the impact could wash through the economy for a few more months, adding jobs and moderating the overall decline.
Then the underlying weakness of the economy will probably reassert itself, say experts. After years of borrowing against homes and cashing in stock to spend in excess of their incomes, many Americans are tapped out. Austerity and saving have replaced spending and investment in many households, constraining the economy.
As many Americans transition from living on home equity loans to sustaining themselves on paychecks, weekly pay continues to effectively shrink: Over the last year, average hourly earnings for rank-and-file workers — some 80 percent of the labor force — have increased by 2.5 percent. But average weekly earnings have expanded by only 0.7 percent, less than the increase in the cost of living, because employers have slashed working hours.
In September, the average workweek edged down by one-tenth of an hour, to 33 hours.
For those out of work, the job market looks harsher now than at any point in the recession. The number of people who have been jobless for more than six months increased in September by 450,000, reaching 5.4 million.
“We have a truly massive crisis of long-term unemployment,” said Christine L. Owens, executive director of the National Employment Law Project in a statement, adding that nearly 400,000 jobless people had exhausted their unemployment benefits by the end of September. “Today’s employment report is a marching order for Congress to pass unemployment benefit extensions to all states, quickly.”
The first signs of improvement are likely to be seen among temporary workers, say experts, as companies now hunkering down in the face of uncertain prospects take tentative steps to expand.
But temporary help services lost 1,700 jobs in September.
“Companies are extremely cautious,” said Roy G. Krause, chief executive of Spherion, a recruiting and staffing company based in Fort Lauderdale, Fla.
All of which translates into continued apprehension in many households.
“It’s terrifying,” said Stephanie Wheeler, 56, of Elizabeth, N.J., who has drained her savings to $800 in the year since she lost her job at a data-processing company, rendering her ability to pay the rent on her apartment uncertain.
“I’ve been here for eight years,” she said. “I don’t know what’s going to happen. I’m petrified of being set out on the street.” Source: The New York Times.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
The New York Times has reported that after several months in which the American economy flashed tentative signs of improvement, a sobering report on the national job market released on Friday amplified worries that a lengthy period of lean times lay ahead.
The economy shed 263,000 jobs in September, and the unemployment rate edged up to 9.8 percent from 9.7 percent in August, according to the Labor Department’s monthly snapshot of the employment picture.
Though the job market worsened, the pace of deterioration remained markedly slower than during the early months of the year, when roughly 700,000 jobs a month were disappearing. That improvement seems consistent with the widespread belief that the recession has given way to economic growth. Yet the report also buttressed fears that economic expansion would be weak and hesitant, with scarce paychecks and economic anxiety remaining prominent features of American life well into next year.
“This is a weak report,” said Stuart G. Hoffman, chief economist at the PNC Financial Services Group in Pittsburgh. “The rate of job loss has tapered off, but we still haven’t reached the point where businesses are willing to hire.”
The Labor Department also made a preliminary revision in its survey of private employers that indicated the job market shrank even more during the recession. The department disclosed that in March this year the economy held 824,000 fewer jobs than previously reported, making an already bleak picture worse.
The endurance of hard times seems likely to increase pressure on the Obama administration and Congress to consider another dose of spending aimed at stimulating the economy, even as the government grapples with deficits projected by some economists to exceed $10 trillion over the next decade.
Despite a $787 billion stimulus package adopted early this year and aimed in part at shoring up state and local coffers, government jobs slipped by 53,000 in September.
“That’s the budget crunch hitting,” said Dean Baker, co-director of the Center for Economic and Policy Research in Washington. “We’re still losing jobs at a very rapid pace. We’re still looking at an economy with a lot of weakness.”
For millions of unemployed people, the latest data merely confirms something they have come to understand intimately, through the discouraging process of seeking work.
“There’s nothing out there,” said Jerry Lamirande, a technology systems engineer in Amarillo, Tex., who has been without a job since April 2008.
During the technology boom of the late 1990s, Mr. Lamirande, 62, worked for IBM, where he drew a salary of about $130,000. After a layoff seven years ago, he has earned about $70,000 a year as a technology consultant working on contract.
Since the spring, he and his wife have lived on her modest salary as a public school teacher and on hardship withdrawals from his retirement account. He has searched nationwide for his next contract, willing to relocate.
“I’ve got to go where the opportunities are,” he said. “The problem is, there aren’t many opportunities.”
The latest jobs report lent credence to that contention. The unemployment rate continued to inch toward double digits, a level last seen in June 1983. The so-called underemployment rate (which includes people whose hours have been cut, and those working part-time for lack of full-time positions, along with the jobless) reached 17 percent, the highest level since the government began tracking it in 1994.
More jobs were lost last month, at 263,000, than were lost in August, as the Labor Department revised the August decline to 201,000 jobs from the 216,000 it initially reported.
Health care remained a rare bright spot, adding 19,000 jobs in September, but construction jobs slipped by 64,000, manufacturing declined by 51,000 and retail lost 39,000 jobs.
Most economists assume the economy expanded at an annual pace of about three percent from July through September. But debate focuses on the vigor and staying power of the recovery.
Optimists anticipate a robust bounce-back from what now stands as the longest recession since the Great Depression. But most economists expect a sustained slog through high rates of joblessness.
The economic improvement in recent months largely stems from businesses cutting inventories at a slower pace. As some companies begin to rebuild stocks, the impact could wash through the economy for a few more months, adding jobs and moderating the overall decline.
Then the underlying weakness of the economy will probably reassert itself, say experts. After years of borrowing against homes and cashing in stock to spend in excess of their incomes, many Americans are tapped out. Austerity and saving have replaced spending and investment in many households, constraining the economy.
As many Americans transition from living on home equity loans to sustaining themselves on paychecks, weekly pay continues to effectively shrink: Over the last year, average hourly earnings for rank-and-file workers — some 80 percent of the labor force — have increased by 2.5 percent. But average weekly earnings have expanded by only 0.7 percent, less than the increase in the cost of living, because employers have slashed working hours.
In September, the average workweek edged down by one-tenth of an hour, to 33 hours.
For those out of work, the job market looks harsher now than at any point in the recession. The number of people who have been jobless for more than six months increased in September by 450,000, reaching 5.4 million.
“We have a truly massive crisis of long-term unemployment,” said Christine L. Owens, executive director of the National Employment Law Project in a statement, adding that nearly 400,000 jobless people had exhausted their unemployment benefits by the end of September. “Today’s employment report is a marching order for Congress to pass unemployment benefit extensions to all states, quickly.”
The first signs of improvement are likely to be seen among temporary workers, say experts, as companies now hunkering down in the face of uncertain prospects take tentative steps to expand.
But temporary help services lost 1,700 jobs in September.
“Companies are extremely cautious,” said Roy G. Krause, chief executive of Spherion, a recruiting and staffing company based in Fort Lauderdale, Fla.
All of which translates into continued apprehension in many households.
“It’s terrifying,” said Stephanie Wheeler, 56, of Elizabeth, N.J., who has drained her savings to $800 in the year since she lost her job at a data-processing company, rendering her ability to pay the rent on her apartment uncertain.
“I’ve been here for eight years,” she said. “I don’t know what’s going to happen. I’m petrified of being set out on the street.” Source: The New York Times.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Law Jobs Outsourced to India
Pascal Lieblich spent six years working for New York firms before moving to India a year ago to become the head of document review at Clutch Group, a legal outsourcing firm.
A born globetrotter, Lieblich, 38, is from Belgium but graduated from the University of Pennsylvania's law school in 2001. He also holds a certificate in public policy and management from Penn's Wharton School of business.
The Am Law Daily recently spoke with Lieblich by phone from his current hometown, Bangalore, about the transition and the adjustments he's made, both culturally and professionally.
Why did you move to India?
I got tired of spending time alone in my office doing legal research and drafting memos and motions. I was looking for a challenge and I've always enjoyed traveling. While traveling across Southeast Asia, I met a couple of Indian attorneys who were working in the legal process outsourcing industry. I'd heard about it before, but they told me more about the type of work people were doing here.
Is that when you started thinking about moving?
Yes. I decided to put my résumé out there to see if there was any interest. Clutch Group had one of the best offers, so I decided to accept theirs. What I really like about LPOs [legal process outsourcing] is the amalgamation between law and technology, one of which I enjoy professionally and the other as a hobby.
What has been the biggest adjustment?
Culture. Most decisions here, both professional and personal, are made at the family level. And that's very different from what we're used to in the West. It was somewhat shocking to me.
How so?
Recently we were working on this big project and needed people to work late at night. Many of the unmarried women who work for us live in hostels, which are basically hotels where people live but are supervised. They have to be home by 10 o'clock, and these are 25-to-30-year-old attorneys. So I was asked to draft a letter asking the hostel for permission to allow these women to work late.
How has your workload changed since moving to India?
In New York I was focusing more on legal research and pleadings, and now I'm spending more time managing people and getting document review projects going and completing them successfully. I have been working long hours, but I'm enjoying what I'm doing. If I have a long weekend, I like to get away to Kerala.
There's been a lot of talk about the quality of legal work coming out of India. Do you think it meets U.S. standards?
Absolutely. We probably spend more time checking the quality of our work because we know people are looking at it closely. I worked in New York law firms, so I know what matters to litigators and make sure we closely follow their guidelines. [Note: Clutch Group says that all new hires must pass the "Enron" test: public documents in the case are uploaded to a software platform for review by prospective employees.]
Are most of your hires from Indian law schools?
Yes. We're one of the top LPOs, so we have close contacts with the top law schools and only hire the most qualified people. Every year there are 80,000 new attorneys that join the legal market here, so there's a tremendous pool of qualified people.
How many foreign lawyers would you estimate are working at Indian LPOs?
A lot, and most of the ones I've met are from the U.S. Several are from top schools and others are from second-tier schools. There are so many opportunities here for such a wide range [of individuals]. The U.S. and India share a common law background, which makes it easier for American attorneys to work here.
Would you encourage lawyers in the U.S. to pursue opportunities in India?
I would recommend it to any attorney looking for an exciting challenge. We work with top law firms and banks and handle big cases. I spend more time talking with people in the U.S. than when I was actually in the U.S. For those who want to combine a global experience with practicing law, this is the perfect combination.
All interviews are condensed and edited for grammar, clarity, and style.
This article first appeared on The Am Law Daily blog on AmericanLawyer.com.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
A born globetrotter, Lieblich, 38, is from Belgium but graduated from the University of Pennsylvania's law school in 2001. He also holds a certificate in public policy and management from Penn's Wharton School of business.
The Am Law Daily recently spoke with Lieblich by phone from his current hometown, Bangalore, about the transition and the adjustments he's made, both culturally and professionally.
Why did you move to India?
I got tired of spending time alone in my office doing legal research and drafting memos and motions. I was looking for a challenge and I've always enjoyed traveling. While traveling across Southeast Asia, I met a couple of Indian attorneys who were working in the legal process outsourcing industry. I'd heard about it before, but they told me more about the type of work people were doing here.
Is that when you started thinking about moving?
Yes. I decided to put my résumé out there to see if there was any interest. Clutch Group had one of the best offers, so I decided to accept theirs. What I really like about LPOs [legal process outsourcing] is the amalgamation between law and technology, one of which I enjoy professionally and the other as a hobby.
What has been the biggest adjustment?
Culture. Most decisions here, both professional and personal, are made at the family level. And that's very different from what we're used to in the West. It was somewhat shocking to me.
How so?
Recently we were working on this big project and needed people to work late at night. Many of the unmarried women who work for us live in hostels, which are basically hotels where people live but are supervised. They have to be home by 10 o'clock, and these are 25-to-30-year-old attorneys. So I was asked to draft a letter asking the hostel for permission to allow these women to work late.
How has your workload changed since moving to India?
In New York I was focusing more on legal research and pleadings, and now I'm spending more time managing people and getting document review projects going and completing them successfully. I have been working long hours, but I'm enjoying what I'm doing. If I have a long weekend, I like to get away to Kerala.
There's been a lot of talk about the quality of legal work coming out of India. Do you think it meets U.S. standards?
Absolutely. We probably spend more time checking the quality of our work because we know people are looking at it closely. I worked in New York law firms, so I know what matters to litigators and make sure we closely follow their guidelines. [Note: Clutch Group says that all new hires must pass the "Enron" test: public documents in the case are uploaded to a software platform for review by prospective employees.]
Are most of your hires from Indian law schools?
Yes. We're one of the top LPOs, so we have close contacts with the top law schools and only hire the most qualified people. Every year there are 80,000 new attorneys that join the legal market here, so there's a tremendous pool of qualified people.
How many foreign lawyers would you estimate are working at Indian LPOs?
A lot, and most of the ones I've met are from the U.S. Several are from top schools and others are from second-tier schools. There are so many opportunities here for such a wide range [of individuals]. The U.S. and India share a common law background, which makes it easier for American attorneys to work here.
Would you encourage lawyers in the U.S. to pursue opportunities in India?
I would recommend it to any attorney looking for an exciting challenge. We work with top law firms and banks and handle big cases. I spend more time talking with people in the U.S. than when I was actually in the U.S. For those who want to combine a global experience with practicing law, this is the perfect combination.
All interviews are condensed and edited for grammar, clarity, and style.
This article first appeared on The Am Law Daily blog on AmericanLawyer.com.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Friday, October 2, 2009
More Layoffs
For the second time this year, the California law firm of Cooley Godward Kronish is axing employees. It has been reported that 58 staffers were cut recently, according to an all-hands memo from Cooley Chief Operating Officer Mark Pitchford.
"This reduction was conducted to eliminate pockets of staffing overcapacity throughout the firm," wrote Pitchford.
The firm laid off 52 lawyers and 62 staff in January of 2009 amidst the deluge of law firm layoffs. The Palo Alto, Calif., firm has had a rough go of it lately, losing a string of partners, including some of its top M&A lawyers.
Thursday's cuts represent about 5 percent or 6 percent of the firm's staff, said Pitchford, and the majority were secretaries. The information services and marketing departments also took a hit. Pitchford said that laid-off employees will be getting severance based on their seniority, but declined to elaborate. He contended that the cuts had nothing to do with the recent departure of partners or boosting 2009 profits. Source: Zusha Elinson
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
"This reduction was conducted to eliminate pockets of staffing overcapacity throughout the firm," wrote Pitchford.
The firm laid off 52 lawyers and 62 staff in January of 2009 amidst the deluge of law firm layoffs. The Palo Alto, Calif., firm has had a rough go of it lately, losing a string of partners, including some of its top M&A lawyers.
Thursday's cuts represent about 5 percent or 6 percent of the firm's staff, said Pitchford, and the majority were secretaries. The information services and marketing departments also took a hit. Pitchford said that laid-off employees will be getting severance based on their seniority, but declined to elaborate. He contended that the cuts had nothing to do with the recent departure of partners or boosting 2009 profits. Source: Zusha Elinson
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Chicago Firm Rescinds Job Offers to 10 New Associates
Wildman Harrold Rescinds Job Offers to 10 New Associates
Chicago-based Wildman Harrold announced bad news for some of its new lawyers recently. The firm is reportedly rescinding job offers to 10 of the 14 associates it had hired from the class of 2009.
The first-year class had already been deferred until March, but after assessing client needs it became clear that it needed to make some cutbacks, the firm says in a statement. Wildman will still pay the 10 associates who lost their job offers a stipend until March.
The firm also announced it had extended offers to only four of the 17 summer associates in this year's program, in keeping with its goal to create a smaller first-year class.
Wildman says it will continue to recruit high-quality candidates from law schools. But over the past 18 months it has increasingly turned to staff and contract attorneys to do document review and research -- tasks often reserved for first-year associates. The change provides a better cost structure for its clients, the firm says. Source: Francesca Heintz
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Chicago-based Wildman Harrold announced bad news for some of its new lawyers recently. The firm is reportedly rescinding job offers to 10 of the 14 associates it had hired from the class of 2009.
The first-year class had already been deferred until March, but after assessing client needs it became clear that it needed to make some cutbacks, the firm says in a statement. Wildman will still pay the 10 associates who lost their job offers a stipend until March.
The firm also announced it had extended offers to only four of the 17 summer associates in this year's program, in keeping with its goal to create a smaller first-year class.
Wildman says it will continue to recruit high-quality candidates from law schools. But over the past 18 months it has increasingly turned to staff and contract attorneys to do document review and research -- tasks often reserved for first-year associates. The change provides a better cost structure for its clients, the firm says. Source: Francesca Heintz
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Thursday, October 1, 2009
Even Harvard Law Students Have Job Woes
Think you've got it tough? You could be a student at Harvard Law School ("HLS"), where big firm recruitment is down 20 percent, according to the Harvard Crimson.
"As a Harvard student, you feel entitled to get a job, and you ignore these dire reports on CNN," one student told the Crimson earlier this year after failing to get a job offer during HLS' recruiting season. "You think that things will work out like every other year."
It turns out that changes in the legal industry—smaller summer associate classes, deferred start dates and associate layoffs -- are also hurting the cream of the Ivy League crop.
HLS administrators and experts hinted to the Crimson that the school might push back the start of its fall recruiting season. And starting this spring, HLS will host a second recruitment period for "firms whose outlooks have changed" in anticipation of an economic recovery.
For one HLS professor and director of the school's legal profession program, smaller associate classes and increased outsourcing of traditional associate work will eventually lead to lower entry-level salaries.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
"As a Harvard student, you feel entitled to get a job, and you ignore these dire reports on CNN," one student told the Crimson earlier this year after failing to get a job offer during HLS' recruiting season. "You think that things will work out like every other year."
It turns out that changes in the legal industry—smaller summer associate classes, deferred start dates and associate layoffs -- are also hurting the cream of the Ivy League crop.
HLS administrators and experts hinted to the Crimson that the school might push back the start of its fall recruiting season. And starting this spring, HLS will host a second recruitment period for "firms whose outlooks have changed" in anticipation of an economic recovery.
For one HLS professor and director of the school's legal profession program, smaller associate classes and increased outsourcing of traditional associate work will eventually lead to lower entry-level salaries.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
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