Financial Advisors Earn Big Dollars In Bankruptcies: Study

Law360, New York (July 13, 2006, 12:00 AM EDT) -- Financial advisors are collecting a rapidly increasing share of the fees in bankruptcy proceedings, according to a new study by a pair of UCLA law professors.

Though courts awarded 53% of fees and expenses to attorneys—traditionally the biggest money makers—in the 74 Chapter 11 reorganizations analyzed between 1998 and 2003, financial advisors got nearly 42% of the pie, with their fees growing at a rate of 25% a year.

Professional fees as a whole, meanwhile, increased only 7% a year.

“The fees of financial advisors have...
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