As Chapter 11 Filings Surge, Legal Decoder Proves Essential for Fee Control

Discover how Legal Decoder can help stakeholders manage legal fees in bankruptcies

The recent uptick in Chapter 11 bankruptcy filings highlights a persistent challenge for struggling businesses: controlling the astronomical professional fees that further deplete already strained corporate resources.

When companies file Chapter 11, legal fees can skyrocket into the tens of thousands of dollars—and in complicated cases, fees can reach into seven figures if multiple lawyers and extended litigation are involved. These eye-watering costs haven't been lost on creditors, which is partly why pre-packaged bankruptcies have steadily increased over the past decade.

This is where Legal Decoder steps in as a critical solution. Having been retained in some of the largest and highest-profile bankruptcy cases including Toys R Us, PG&E, and Purdue Pharma, Legal Decoder has examined over a billion dollars in spend and currently processes over $70 million per month in bankruptcy fees.

For companies facing restructuring, a dedicated fee examination solution serves as the translator between financial distress and financial recovery—scrutinizing billing practices, identifying redundancies, and ensuring compliance with UST guidelines. When professional fees consume diminishing assets, creditor recoveries inevitably suffer.

The most effective bankruptcy outcomes happen when fee management protocols are established before the first billable hour. As Chapter 11 filings continue to rise, has your organization considered how specialized fee management expertise might preserve critical value in restructuring scenarios?

Please take a look at out PG&E Case Study to better understand how Legal Decoder can help with bankruptcy legal fee management.