Paul Knighten
Specializing in Creditor Representation
“I have long advocated that creditor representation in consumer bankruptcy works best on a boutique basis. I now see that term has crept into the pages of local attorneys whom I have mentored. When Judy (my wife) and I moved to Atlanta 30 years ago for her career, and I stumbled into consumer bankruptcy, the firms knew they were about to experience a surge and staffed up. Most of the firms hired young lawyers right out of school. The firm I joined appreciated my broad experience and maturity. Consequently, for 30 years I interacted daily with young, inexperienced attorneys. As a result, I have impacted a generation of lawyers.
I was a charter member of the Metro Atlanta Consumer Bankruptcy Bar (MACBAG) and served as an officer on the board for several years. In 2018, I received their service award, which had traditionally gone to judges. Since then I have become a part-time Magistrate Judge of Fulton County.
All of this leads to my point regarding boutique practices being the proper venues for reliable creditor representation. For 5 years I worked for a mill firm that filed hundreds of bankruptcies a month. During this time, I found that mill debtor firms have a confusing, frustrating process.
Mill Debtor Firms Process
- The debtors pay their fees in installments (and they get what they pay for).
- The debtor sees an attorney at intake.
- Then, they see different attorney at the meeting of creditors.
- They see a paralegal prior to confirmation or a motion hearing.
- Then, they see another new attorney in court.
Similarly, large creditor firms operate using this process (particularly the firms that represent large mortgage companies or national automobile finance companies). The large lenders pay a premium to have large firms manage cases with lawyers all over the country. Unfortunately, this guarantees confusion and misunderstandings in the process as many lawyers try to tackle a single case.
The large lenders would do better to work directly with boutique firms on the ground locally. By using boutique local firms, there is peace of mind in knowing that the same lawyers are working on every part of the process.
After 25 years working solely with creditors on consumer bankruptcy matters, I have come to focus on local creditors and out-of-state institutions who want to work with local counsel.”
—Paul Knighten
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