INTERVIEW

Interview with J. Scott Bovitz
By Susan Godstone

J. Scott Bovitz is the senior partner of Bovitz & Spitzer Los Angeles (http://bovitz-spitzer.com). Bovitz is the editor of the forthcoming CEB publication Personal and Small Business Bankruptcy Practice in California.

Susan Godstone is a freelance writer, researcher and editor. She graduated in law from Warwick University, England and has worked for over 15 years in publishing, both in the UK and US. She is the Managing Editor of Case 'n Point. Her e-mail address is sgodstone@aol.com

SG: Is your practice primarily bankruptcy law?

JSB: Yes, primarily bankruptcy (with a smidgen of Internet law for law firms).

SG: Why did you decide to practice bankruptcy law?

JSB: Originally, because my professor David Luna, a bankruptcy lawyer, offered me a clerking job when I was in school. When I graduated from law school, Luna offered me a job that paid me a $1,000 more than my target income as a first year associate. (Thanks, David.)

SG: So he got you started in bankruptcy?

JSB: Yes.

SG: And do you have any regrets?

JSB: Not at all. Bankruptcy is an absolutely fascinating area. Problems from every substantive legal area come into play in a bankruptcy case, so I get to be a general practioner and a specialist. I draft documents as a transactional lawyer. I litigate and go to trial about once a month, though my trials are short. I will be a student of bankruptcy law for my entire life, but never master all of it. I love that aspect of the area. I’m always learning something new.

SG: Are most of your clients small companies?

JSB: I represent everyone from big companies to individuals (Mom and Pop). Bankruptcy lawyers in the big cities usually fall into two distinct groups: consumer bankruptcy lawyers; and business bankruptcy lawyers. Consumer bankruptcy lawyers handle Chapter 7 and 13 matters. Business bankruptcy lawyers work in Chapter 11 reorganizations or big Chapter 7 liquidations. I dabble in both areas, which makes me a little different from most practitioners. Many of our contributing authors are also bankruptcy generalists.

SG: I understand that the book that you are editing for CEB is for attorneys handling bankruptcy matters for smaller companies and individuals?

JSB: Yes. Personal and Small Business Bankruptcy Practice in California is written for: lawyers who are not bankruptcy lawyers; and bankruptcy lawyers who need a quick resource on recurring bankruptcy topics. For example, an attorney might handle debtor cases for consumers and file a lot of Chapter 7 petitions -- but rarely handle Chapter 13 matters. Our book gives that lawyer a chance to learn something about Chapter 13 in minutes. Other attorneys handle Chapter 7 and 13 matters, but understand little about Chapter 11. Many problems that can’t be solved in Chapter 13 might be solved in Chapter 11. The book will help a debtor's attorney pick the best Chapter for the client's problem. Creditors' attorneys will find the book to be useful, regardless of the Chapter. But, the work is not designed to be a resource for complex issues arising in the big Chapter 11 cases (e.g., United Airlines or PG&E).

SG: Who are the authors?

JSB: A large team of experienced bankruptcy specialists has cross-pollinated the book over two years. The authors have really been great. (They have no personal lives.) Our publisher/master editor/proofreader/cheerleader/task master was Suzanne Weakley. Suzanne is one in a million. (She has no life, either.)

SG: It sounds like a major task.

JSB: It was! The task was made more difficult because we’ve been drafting around anticipated reforms to bankruptcy law. But, the most recent bankruptcy bill went down in flames in 2002 and there were only a few minor non-substantial items during the year. Personally, I think we won’t see bankruptcy reform in 2003 (given the weak U.S. economy and political problems in the Middle East and Iraq). If I'm wrong, and reform is enacted, we’re ready to produce a supplement for the book in short order. You might be surprised to know that most bankruptcy professionals have been strongly opposed to the draft reform bills.

SG: Has your workload been heavier in the last couple of years?

JSB: Yes. Bankruptcy work is cyclical. I have been a lawyer since 1980. We formed Bovitz & Spitzer in 1991. There is more bankruptcy work today than any time since the early 1980s. According to the Administrative Office of the U.S. Courts, there were more than 1,500,000 bankruptcies in fiscal year 2002. Total filings in the three-month period ending in September were the highest in U.S. history! (What a great time to publish a bankruptcy book!) More bankruptcy cases are filed in Los Angeles than any other court in the country -- about 10% of the national total. When you add the Southern District, Northern District and Eastern District, California is a major bankruptcy arena.

SG: Does a debtor have to file bankruptcy where she lives?

JSB: A debtor is supposed to file a petition where she lives, but the venue rules in Title 28 are a little more complex. A company on the brink can often do a little "forum shopping," if it is eligible to file a petition in more than one federal district. In large cases, a team of bankruptcy lawyers will carefully research which venue is best for anticipated critical motions in the case. On a smaller scale, some individuals will move to a jurisdiction that has more liberal exemptions. California's exemptions are adequate for many individuals. But, the homestead exemption is substantially more conservative in California than in Texas or Florida. So, some percentage of debtors-to-be will move to Texas or Florida, where they hope to be able to exempt more equity in their new home than they would have been able to protect in California.

SG: What about Internet law? What kind of work do you get in that field?

JSB: I deal with the legal, ethical, technical and design aspects of law firm websites. See <http://bovitzweb.com>. I created a course for UCLA extension on law firm website development and design. I help lawyers with: what lawyers can and can’t say on their websites; jurisdictional issues (since websites are advertisements which cross over state lines); designing (and testing) effective websites; and making creative use of websites. There are a few lawyers who have been very successful using the Internet to develop clientele. Yet, most law firms simply use the web to put up an online brochure. Such a brochure will not necessarily generate new clients. Of course, websites are just one avenue of client development and handling.

SG: Do you have any particular heroes in the legal profession? You mentioned your law professor earlier who had helped you get into the bankruptcy field.

JSB: David Luna was an excellent teacher. I thank him for giving me a chance to work in the field. I don't really have any heroes, but I learned a lot working for attorney Joe Bernfeld and his team. Joe was a bankruptcy lawyer for 50 years. I remember a framed letter in Joe Bernfeld's office confirming his employment as an "office boy" in the 1930's in New York City. Joe never forgot that bankruptcy was about people — with all of their foibles and predilections. Every January, Joe's memory is honored by the Los Angeles Bankruptcy Forum.

SG: What do you do for fun?

JSB: I rock climb, usually at Joshua Tree. I have been an active ham radio operator since 1969. I talk to people around the world and participate in major "contests." I am also very active in "transmitter hunting." I triangulate and locate small transmitters on dirt roads deep in the desert and the mountains. I help people with their websites. I travel and dive. I do significant volunteer work for the California Bankruptcy Forum <http://www.calbf.org>, the Los Angeles Bankruptcy Forum <http://labankruptcyforum.org>, and the State Bar of California Board of Legal Specialization <http://www.californiaspecialist.org>. I am the webmaster for the second site and co-webmaster for third. I take digital photographs (a few of which are posted at <http://bovitz.com>. That keeps me pretty busy!

FEATURED BOOK

Personal and Small Business Bankruptcy Practice in California
Approx. 950 pages, 2 looseleaf volumes, 2003, BU-33520, $199