24 Jun Thinking of leaving the Legal Market?
Even before the latest lockdown, life was really hard for many law firms, particularly those firms undertaking Claimant personal injury work. Many had seen their fees driven down so that their profit margin was very poor and in many cases, non-existent. Some firms had already taken the decision to sell off their personal injury work and exit the market. Unfortunately this has resulted in some firms becoming insolvent. The situation will not be improved by the Whiplash Reforms which came into force on 31st May 2021.
There are some firms that are willing to purchase the remaining files of those firms wishing to exit the personal injury market but the purchase price is often very low, maybe even 20% of the WIP outstanding. Having worked with Recovery First for over 3 years, we find that they adopt a more structured and pragmatic approach to the purchase of files. Recovery First’s aim, via their own experienced panel of solicitors, is to ensure that the donor firm obtains a fair and reasonable return for the WIP based on the fee recovered at the end of the case rather than offering a poor return at the beginning
Through Recovery First’s network of Insolvency Practitioners & other intermediaries they have, over the years, assisted numerous law firms exiting the personal injury market to achieve excellent results for recovery of WIP.
For more information visit Recovery First.