How This Bankruptcy Firm Dominates Without Bifurcation
Here are three key takeaways from this episode of 720 System Strategies:
- You do not have to bifurcate to compete, even in a market where many firms do. Lars Olsen says his firm retains 160 to 200 clients a month in Oregon using a paid-in-full model before filing.
- Debtors often care less about “file now” than attorneys think. What they want first is relief from collection calls, clear communication, and a manageable path to getting their case filed.
- A simpler process can ease the burden on staff and improve the client experience. Olsen Danes collects documents up front, avoids the extra moving parts that come with bifurcation, and uses case ownership at each stage to keep matters moving.
In this episode of 720 System Strategies, I talk with Lars Olsen, principal of Olsen Danes Law Firm in Oregon, about a question many bankruptcy attorneys wrestle with: do you need bifurcation to stay competitive? Lars makes the case that you do not. His firm has built major market share without it by focusing on access, follow-up, simple pricing, and a system that gives clients relief early while keeping the filing process clean for staff. Watch the episode, or keep reading for FAQs from this episode.
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Frequently Asked Questions
- Do you need to bifurcate to compete in the bankruptcy industry?
- Why does Olsen Danes use a paid-in-full model before filing?
- How does the $400 retention model work?
- Why do debtors accept this model instead of looking for a file-now option?
- What makes this model easier on staff?
- How does Olsen Danes follow up with retained clients before filing?
- Why does the firm avoid formal payment plans?
- How does case ownership work inside the firm?
- How often do clients get access to an attorney?
- What does this episode say about market share, service, and uncollectible clients?
FAQ: Do you need to bifurcate to compete in the bankruptcy industry?
No, you do not need to bifurcate to compete in the bankruptcy industry. Lars Olsen explains that his firm retains between 160 and 200 clients per month in Oregon without using bifurcation at all. Oregon is described as a market where bifurcation is common, yet his firm still commands a large share of the market. His point is simple: a law firm can compete by offering strong service, clear expectations, and a workable path to filing without turning bifurcation into the center of the business model.
FAQ: Why does Olsen Danes use a paid-in-full model before filing?
Olsen Danes uses a paid-in-full model before filing because it keeps the process simpler for both the firm and the client. Lars says bifurcation can create more paperwork, more moving parts, and more stress for staff, especially when a case is filed fast and deficiency documents have to be chased down later. His firm prefers to collect tax returns, pay stubs, and bank statements up front, then file only when fees are paid and the case is ready. He also points out that once the pressure is off, clients are often less motivated to send documents. So from his perspective, waiting to file until everything is in place creates a cleaner workflow.
FAQ: How does the $400 retention model work?
The $400 retention model works by giving the client immediate representation before the bankruptcy is filed. Lars explains that the full Chapter 7 fee is usually in the $2,000 to $2,500 range, plus the court filing fee, and the initial $400 goes toward that total. Once the client pays that amount, the firm is retained and the client can start directing creditors to the law office. The case is not filed at that point, but the relationship with counsel has started, which gives the debtor a sense of relief and a clear next step. The balance is then paid over time until the case is ready to file.
FAQ: Why do debtors accept this model instead of looking for a file-now option?
Debtors accept this model because what many of them want most at the beginning is relief, not necessarily an immediate filing. Lars says the firm explains that once the client retains them, creditors can be told to contact the law office. That changes the emotional temperature right away. Debtor attorneys may overestimate how much consumers fixate on the phrase “file now” versus “hire now.” Debtors respond to the chance to stop the calls, get their questions answered, and work toward filing over the next few months.
FAQ: What makes this model easier on staff?
This model is easier on staff because it cuts down on the extra work that can come with rushed filings and post-filing cleanup. Lars says his team wants all the documents up front. They do not want to file first and then spend the next couple of weeks chasing deficiency documents while the client has already relaxed. He also says the flat-fee, paid-in-full structure is easier to track because the firm does not have to hire staff to manage post-filing collections. The overall picture he paints is a more orderly production line with fewer moving pieces and fewer headaches.
FAQ: How does Olsen Danes follow up with retained clients before filing?
Olsen Danes follows up with retained clients before filing through case managers who stay in active communication until the case is ready. Lars says the firm uses drip emails before retention, but once someone hires the firm, the case managers take over. They call and email, follow up about documents and payments, and keep the case moving. He says they do not want clients to feel forgotten for six, twelve, or eighteen months. That ongoing contact is a core part of how the firm turns retained cases into filed cases without relying on a rigid payment system.
FAQ: Why does the firm avoid formal payment plans?
The firm avoids formal payment plans because Lars does not want the law office to feel like one more bill collector. He says they have tried more regimented approaches, but he does not want his team calling debtors every two weeks demanding $50 or $100. In his view, that would require more staff and would change the relationship. The firm would rather be an ally helping the client get to filing than another source of pressure. Instead, they allow clients to pay as they are able and use periodic follow-up to keep momentum going.
FAQ: How does case ownership work inside the firm?
Case ownership inside the firm works like a handoff system, where each stage has a clear owner. Lars compares it to an assembly line. Before retention, the matter is handled by intake staff. After retention, it moves to a case manager, who owns it until the fees are paid and the documents are ready. Once the case is filed, it moves to a paralegal for the duration of the proceeding. That structure creates accountability because each person knows what they own, and it gives the case manager a built-in reason to push the matter forward. The faster it gets filed, the faster it moves off that person’s desk.
FAQ: How often do clients get access to an attorney?
Clients get access to an attorney as often as needed. Lars says his firm believes in being accessible, and he tells clients during intake that if they have a question, they can call and set up a phone appointment. He notes that case managers can answer most routine questions, but if a client wants to talk to him directly, staff is instructed to make that appointment. That openness supports the firm’s broader model of continued free consultations and helps clients feel supported even before the case is filed.
FAQ: What does this episode say about market share, service, and uncollectible clients?
This episode says that market share does not have to come from racing to the bottom, and service does not have to mean signing up everyone who calls. Lars says his firm is not the cheapest in the state, yet it still holds a substantial share of the Oregon market. He also draws a line around who should not be pushed into bankruptcy. He gives the example of seniors living on Social Security or disability who may be judgment proof and says those people should often be referred elsewhere, including the HELPS program. That part of the conversation stands out because it shows a business philosophy tied to service and restraint, not only volume.
Disclaimer: The content on this blog is for informational and educational purposes only and does not constitute legal or financial advice. Watching our videos and reading our blogs does not create an attorney-client relationship. Always consult a licensed bankruptcy attorney or financial professional about your situation.