Big Respect for Cravath and Its Bankruptcy Department on Harrisburg Representation

Big Respect for Cravath and Its Bankruptcy Department on Harrisburg Representation

Harrisburg, the capital of the state of Pennsylvania, is hurting financially. The city of 49,000 faces $282 million in debt it has guaranteed and has missed about $10 million in related payments this year. The city now contemplates a bankruptcy filing in order to resolve its debt and financial problems.

A few years ago the city seemed to be entering into a renaissance of sorts as new shops and restaurants began to revitalize the downtown. Now the growth has stopped as debt overwhelms the city where almost 25 percent of its residents live below the poverty line.

The city may have to file a chapter 9 bankruptcy to resolve its financial problems. But, filing a bankruptcy case is expensive and would take valuable resources away from city projects and programs.

Cravath Swaine & Moore to the Rescue!

Five law firms pitched Harrisburg's city council to help the city through a potential bankruptcy. Cravath Swaine & Moore, one of most-respected New York City law firms and bankruptcy department that bills at rates approaching $1,000 for some partners, was chosen and has agreed to represent the city on a pro-bono basis. That means the city will not have to pay for the services which could easily run into the millions.

The law firm calls it representation "one of its most significant public service commitments in years" but its significance may extend beyond its firm. Hopefully, other law firms and corporations will continue this trend and provide services to the needy. It is very encouraging that Cravath would take on this representation on a pro-bono basis as it will be a great benefit not only the city but to all of the citizens. On a smaller scale, Edwards Angell Palmer & Dodge LLP provided an superb pro-bono benefit in allowing me to co-write The Road Out of Debt so anyone struggling with personal financial problems could find help from both a bankruptcy lawyer and a bankruptcy judge.

Many Americans are struggling with their financial problems. Cravath's representation will ideally lead the way for more law firms and corporations to lend a helping hand.

Read more articles about consumer debt by Ted Connolly, co-author of The Road Out of Debt