LAWYERS WHO ONCE relied heavily on fees from property transactions are now scrambling for new sources of income. Ironically, it is the gloomy increase in personal bankruptcies that is offering some of them a glimmer of hope.
The number of bankruptcy applications for January this year alone has exceeded 2,100. Last year, 9,151 residents went bankrupt, representing almost a tenfold increase over the 1998 total of 893. About seven out of 10 of those who resort to bankruptcy have lodged papers by themselves. The law firms are competing for the remainder who want lawyers to negotiate the best deals for them.
Known for his flair for publicity, solicitor Paul Tse Wai-chun was among the first to focus on the emerging bankruptcy market. His leading position, however, has been taken over by Thomas Tse Lin-chung, who began tackling bankruptcy applications only five months ago. During the last week of September, his firm served just eight applicants. But business has since soared.
The numbers last year climbed steadily from 41 in October to 108 in December. The tally reached 268 in January, dipping to 187 last month due to the Lunar New Year holidays. That means his firm completed more than 750 cases in less than six months.
That is more than 10 per cent of the total market. Thomas Tse hopes his firm can process a record 300 bankruptcy cases this month. His team of six specialists is charging between $4,500 and $14,500 a case.
The staff may get a one-month bonus should they manage to achieve the target.
According to the Official Receiver's Office, unemployment and excessive use of credit facilities are the two key ingredients in the recipe of personal financial ruin. Those who have sought legal advice before lodging their applications are primarily young people aged between 25 and 45.