Careers in Bankruptcy Law
Believe it or not, bankruptcy is big business. Both debtors and creditors need representation, and these come in a variety of types, primarily individual and corporate. And, unlike some other areas of legal practice, bankruptcy has a high incidence of litigation because a bankruptcy filing is itself a form of litigation. In other words, bankruptcy specialists can find themselves in court quite often if they like. And, because each bankruptcy is unique, bankruptcy lawyers have the opportunity to be creative and to test new strategies.
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Clerkship
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Working as a clerk is a common way for successful law students to get valuable experience. A clerkship can be the launch pad for a promising career in private practice. A clerkship in a federal bankruptcy court is especially helpful for someone who wants to specialize in bankruptcy law. But, less common, are career clerks who eschew the world of private practice. While the earning potential of such a decision might be limited compared to the private sector, career clerks earn above the national median lawyer's salary. And, it's an increasingly common choice for those who prefer the more intellectual, academic side of the law.
Corporate Bankruptcy
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Perhaps the most lucrative area of bankruptcy practice is corporate bankruptcy--the representation of corporate clients in liquidation or reorganization. Not surprisingly, corporate bankruptcy touches on all aspects of business law from contracts and securities to taxes. Corporate bankruptcy attorneys must be not only specialists in the bankruptcy code, they must also have a firm understanding of general business law that they are able to translate into effective trial advocacy.
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Individual Debtor Representation
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Every day people who have to file for bankruptcy are more likely to be represented by somewhat smaller firms than the ones that specialize in major corporate bankruptcies, but it's quite common for mid-sized firms to have both corporate and individual bankruptcy debtors as clients. Some lawyers who represent individual debtors find this to be one of the most rewarding aspects of their work; one which allows them to see how their efforts make a difference in people's lives.
Private Practice
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The ability to work away from a firm on one's own is highly desirable for an increasing number of lawyers in the younger generations, who find the requirements of the law firm too demanding. Making a practice out of just bankruptcy representation is challenging because the attorney's fees for the debtor are restricted by the case trustee and bankruptcy code. Volume of work and efficiency are, therefore, a necessity. Fortunately, bankruptcy practice requires a general knowledge of many areas of law, and it is possible to supplement a bankruptcy practice with other work.
Considerations
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Like the economy itself, career opportunities in bankruptcy law are cyclical. When a recession hits, it's common for the number of bankruptcies to jump higher quickly. During these periods, lawyers and recent graduates can see many opportunities to advance in the bankruptcy law field. Ironically, good times for the economy are relatively lean for bankruptcy law, so timing can be critical for choosing this specialty as a career.
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