The Pinch Points
Why Bankruptcy Firms Come to Us for Capital
Bankruptcy is the rare practice that's busiest when the economy turns — and it carries two timing problems no other firm has, collecting Chapter 7 fees before filing and Chapter 11 and 13 fees slowly out of the estate or plan. Our lenders read the firm's revenue across both. Sound familiar?
The Pre-Filing Collection Squeeze
Chapter 7 fees must be collected before filing — you do the intake, the means test, and the prep, then can’t proceed until the fee is paid. At $500–$2,000 a case across 50–100 filings a month, that’s a $25K–$150K pre-filing float carried at any time.
The Chapter 11/13 Payment Horizon
Reorganization and plan work is paid over months from the estate or the repayment plan — $40K–$150K in earned fees outstanding while the work is already done.
The Counter-Cyclical Volume Swing
Filings dry up when the economy is strong and surge when it turns — the firm carries fixed overhead through the slow stretches and has to staff fast when volume spikes.
The Slow-Stretch Burn
In good economic times, low filing volume meets a constant $30K–$75K monthly burn — the practice has to be carried through the quiet years.
The Surge Staffing Ramp
When filings spike, you need paralegals and associates fast — $8K–$15K a month per hire — added before the case volume monetizes.
Buying In or Acquiring a Practice
A partner buy-in or acquiring another bankruptcy practice is a $150K–$700K move that won't wait on a slow approval queue.
What an operator said
“Collecting Chapter 7 fees up front and waiting on Chapter 11 plans to pay is a constant juggle, and the slow years between downturns are their own challenge. The working line smoothed both — we stopped timing hires to the bank balance.”
R. Mateo · bankruptcy law firm · Las Vegas, NV
Start Here
See Your Range in 60 Seconds
No credit check, no documents to start, and an estimated funding range on the spot. No one contacts you until you’re ready to move forward.
What Happens When You Start
Estimate Your Capital Range
Slide to your annual gross revenue. We size capital off your top line — not your credit score.
Estimated Capital Range
A conservative range based on 10-15% of annual revenue — many businesses qualify for more with strong receivables or assets behind them. Lenders return real term sheets once they see your file.
60 seconds · No obligation · Estimate only
Built for the Trade
What We Fund for Bankruptcy Firms
Working Capital for the Collection Timing
An unsecured, revenue-based working line covers the pre-filing workup and the months until Chapter 11 and 13 fees are paid, so the practice runs regardless of when the fee lands.
A Line Against Earned Reorganization Fees
A working line advances against earned-but-unpaid plan and estate fees, turning the payment horizon into usable cash.
Capital for the Downturn Ramp
A turning economy floods bankruptcy practices with work; financing funds the immediate capacity to meet it, so the firm scales into the surge instead of capping at last year's staffing.
Revenue-Based Acquisition & Buy-In Capital
Buy in or acquire a practice on revenue-based, capital-stacked financing — not an SBA queue.
Match Your Situation
The Funding Gaps We Bridge for Bankruptcy Firms
Match your situation to the structure. Every one of these funds on the firm's revenue across both fee timings, not a perfect credit file.
| What It Looks Like | Funding Solution | Amount | Speed | |
|---|---|---|---|---|
| Banks won't fund a practice with deferred, plan-paid fees | Revenue and receivables underwriting | Working Capital | $75K–$5M+ | 1–3 days |
| Chapter 7 fees come before filing; Chapter 11 comes after | Working capital covers both timings | Working Capital | $75K–$5M+ | 1–3 days |
| Volume runs counter-cyclical to the economy | A line carries the slow years and funds the surge | Business LOC | $75K–$5M+ | 1–5 days |
The Products
How Bankruptcy Firm Financing Is Structured
Most law-firm files fund between $75K and $5M+, structured to the pre-filing timing, the earned-fee receivables, or the office and case-tech build. Larger lines available when revenue, cash flow, and story qualify.
| Amount | Term | Best For | Funding Speed | Typical Structure | |
|---|---|---|---|---|---|
| Business LOC | $75K–$5M+ | Revolving | Pre-filing timing, volume swings | 1–5 days | Unsecured line, no PG by default |
| Working Capital | $75K–$5M+ | 6mo–10yr | Overhead through the slow years | 1–3 days | Often unsecured, daily/weekly ACH |
| Invoice Factoring | $75K–$5M+ | Per invoice | Earned plan and estate fees | 1–2 days | Receivables secure the line |
| Equipment Financing | $75K–$5M+ | 2yr–7yr | Case-mgmt and filing software | 3–7 days | Equipment serves as collateral |
Tax Strategy
Section 179 on Office & Case-Tech — Worked
If last year was strong and you’re about to write a check to the IRS — stop. Acquire qualifying equipment with as little as 10% down, finance the rest, and write off the full purchase price in year one. Section 179 covers it up to the annual cap; 100% bonus depreciation — made permanent in 2025, with no cap and no income limit — carries the rest.
At the top bracket, that first-year deduction can return meaningful tax savings — and for an established business with strong cash flow, it’s the difference between writing a check to the IRS and putting the same money into your own equipment. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You financed the machine and put down a fraction of its price — but you deduct the full price in year one. The write-off is bigger than your down payment, and the equipment keeps working the whole time.
Scales with your numbers
Illustrative only. Actual savings depend on your tax bracket, entity type, state conformity, and CPA guidance. Section 179 and bonus depreciation are elections your CPA makes for your situation; above the Section 179 cap, 100% bonus depreciation carries the balance.
Terms reflect credit, revenue, time in business, and each lender. Every file is unique — see what the desk structures for yours in the 60-second qualifier.
Bobby’s Take
“Bankruptcy is the rare practice that's busiest when everyone else is struggling — and it carries two timing problems no other firm has. You collect Chapter 7 fees before you can file, fronting the workup on every case, and you collect Chapter 11 and 13 fees slowly, out of the estate or the plan, months after the work. Add a caseload that runs counter to the economy and you've got a practice that has to be carried through the good years and staffed fast when the bad ones hit. We fund all of it — the pre-filing squeeze, the plan-fee horizon, the counter-cyclical ramp — on an unsecured, revenue-based line. Get the timing handled — the pre-filing squeeze, the plan-fee horizon, the counter-cyclical surge — and the practice runs steady whether the economy is booming or breaking.”
Bobby Friel · Founder · 20+ years in banking and finance
How It Works
From Application to Funded
One application, 70+ lenders competing, a dedicated specialist, and most files funded in days.
60-second estimate
Enter your numbers — no credit check, no documents. You see an estimated funding range on the spot.
A specialist is assigned
A real funding specialist — not an algorithm — reviews your file, usually within 24 hours.
70+ lenders compete
Your application goes to the marketplace. Competing offers typically land 24–48 hours later.
You pick the offer
Compare structures and terms with your advisor. No obligation until you choose to sign.
Funded in days
From same-day working capital to a multi-piece stack, most files fund in days — not the bank’s 60–90.
Underwriting
What Underwriting Looks At
Funding here leads with what your business actually does — your revenue and cash flow. The specialist desk reads the real picture from your statements, then matches it to the lenders most likely to fund it.
How you’re evaluated
Revenue-first
sized off your top line, not just your balance sheet.
Cash-flow driven
your bank statements show how the business really runs.
Bank-statement underwriting
even a down year is read off 4 months of statements.
Story-driven
a big new contract, a seasonal swing, a turnaround in progress: context the raw numbers miss counts too.
What to have ready
↳Had a loss year? It’s read off the bank statements — 4 months, not 6.
Start fast, finish complete
The operators who fund quickest come to the specialist review with these ready — but you don’t need all of it to start. Your signed application and bank statements are what unblock the review; the rest can follow as trailing docs. Real term sheets come once the lenders can see a true business overview, so the move is simple: get the application and statements in right away, and don’t let a missing tax return hold up your term sheets.
Credit, straight
Qualification
Who Gets Funded — and Who’s Not Ready Yet
A straight read saves everyone time — here’s the line between a bankruptcy file that funds and one that isn’t ready yet.
↳Time in business is a factor, not a gate — newer crews with strong revenue still qualify.
Not ready yet isn’t a no — it’s a checklist. Most of it is fixable in a quarter or two, and your advisor will tell you straight which gaps to fix before a file goes in.
The Operator's Guide
Bankruptcy Law Firm Financing
Two Fee Timings No Other Practice Has
Bankruptcy practice collects Chapter 7 fees before the case can be filed and collects Chapter 11 and 13 fees slowly, out of the estate or the repayment plan, months after the work is done. Add a caseload that runs counter to the economy and the firm has to be carried through the good years and staffed fast when the bad ones hit. We fund all of it — the pre-filing squeeze, the plan-fee horizon, and the counter-cyclical ramp — on an unsecured, revenue-based line, so the timing of the fee never decides whether you can take the case.
One Application, 70+ Lenders
Whether it's a working line through the slow years, a line against earned plan and estate fees, or equipment financing for case-management and filing software, we connect you with 70+ lenders who fund law firms every week. Working capital, lines of credit, receivables advances, and equipment financing — $75K to $5M+, on the firm's revenue, with §179 writing off qualifying equipment the year it's placed in service. One application, soft-pull review to start.
Common Questions
Bankruptcy Financing — Questions, Answered
Yes — an unsecured, revenue-based working line covers the pre-filing workup and the months until Chapter 11/13 fees pay.
Yes — a working line advances against earned-but-unpaid plan and estate fees.
A line of credit is unsecured and revenue-based by default; receivables financing can be secured against the earned fees for better terms, but it's optional.
A signed application plus four months of bank statements, a P&L, a balance sheet, and two years of returns. If recent years show losses, the specialist desk can underwrite on four months of bank statements.
Yes — revenue-based and capital-stacked on firm revenue, not an SBA 7(a) loan.
Recommended Funding
The Products That Fit Bankruptcy Work
Business Line of Credit →
A revolving line carries the pre-filing timing and draws against earned fees.
Working Capital Loans →
Carry overhead through the slow years and staff fast when filings surge.
Invoice Factoring →
Advance against earned-but-unpaid plan and estate fees.
Equipment Financing →
Finance case-management and filing software — §179 included.
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