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Recovery in the legal industry has been sluggish at best.And now it seems like firms are resorting to last-ditch efforts to stay afloat.
As of Sept. 30, about 115 law firms were holding balances on their lines of credit that are about a third higher than they were last year, according to The Am Law Daily, citing a survey from Wells Fargo.
That troubling trend suggests firms are using short-term debt to stay operational late in the year, according to Am Law.
While lawyers have a reputation for being overworked, these days firms are having trouble keeping attorneys busy, the report stated.
This new information is worrisome but not shocking.
Demand for legal services fell .8 per cent last quarter, meaning work across the board, including corporate and bankruptcy work, has plummeted for lawyers.
“Nearly all major practices were down during the quarter,” Peer Monitor revealed in a study about the industry. “The law firm market continues to struggle.”
“Nearly all major practices were down during the quarter,” according to Peer Monitor. “The law firm market continues to struggle.”