The collapse of McGlinchey Stafford has now moved into federal bankruptcy court, with filings showing the defunct law firm owes more than $10 million to lawyers, banks, and other creditors. The Chapter 7 bankruptcy case, filed in the US Bankruptcy Court for the Eastern District of Louisiana, outlines substantial liabilities tied to the firm’s abrupt shutdown and the financial fallout that followed.
McGlinchey Stafford, a long-established New Orleans-based law firm, officially ceased operations before seeking liquidation under Chapter 7 of the US Bankruptcy Code. Court documents indicate that both the firm’s assets and liabilities are estimated to fall between $10 million and $50 million. The filing lists hundreds of creditors, including former attorneys, financial institutions, vendors, and other business partners.
More Than $10 Million in Outstanding Debt
According to the bankruptcy petition, McGlinchey Stafford’s debts exceed $10 million. The liabilities reportedly include obligations to former lawyers for compensation and partnership-related payments, as well as outstanding amounts owed to banks and service providers.
Large financial institutions are among the creditors identified in the case. In addition, law firms and professional service providers that previously worked with or against McGlinchey Stafford are also listed as creditors. The breadth of claims underscores the widespread financial ripple effect caused by the firm’s dissolution…