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To Streamline Practice Focus, Small Law Firm Sells Off Bankruptcy Practice to Competitor

Roseville-based Litchney Law Firm has sold its bankruptcy practice to Citrus Heights-based Hernandez Legal Group Inc. The sale took effect on April 1.

The deal is unusual for two reasons. First because it kicked off with a Craigslist ad posted by Founder Sarah Litchney that Kristy Hernandez came to learn about through a friend. Second, because the business sold to Hernandez will, in fact, add to the revenue of Litchney Law.

This sale aims to promote a long-term relationship between the two firms with Litchney Law getting a percentage of the money Hernandez makes off the bankruptcy clients Ron Holland, Bankruptcy Attorney at Litchney Law, will be moving with. Holland managed the San Francisco office of Jacoby & Meyers from 1985 to 1995. Then he ran his own firm in Sacramento before joining Litchney Law.

Kristy Hernandez, Managing Attorney at the Hernandez Law Group said, "Sarah (Litchney) has been a competitor. My passion is bankruptcy: how do we help someone start over? I knew the cases would be in good shape and this allows me to grow the practice."

While the deal will let the Hernandez Law Group focus on getting families out of debt by providing a range of legal services, including bankruptcy, loan modification, debt negotiation and settlement, tax mediation and credit repair; it will help Litchney Law concentrate efforts on growing practice areas in real estate, estate planning and probate.

Sarah Litchney told the media that the sale of the bankruptcy practice was a business decision that will allow the law firm to focus on real estate practice areas including short sales, foreclosures and settlement of mortgage-related debts, as well as estate planning and probate. About a third of Sacramento-area property owners remain messed up on their mortgages.

Sarah said, her law firm is enjoying being able to focus and develop strategic business plans around their real estate practice area. "Our real estate clients particularly enjoy the unique benefit of being able to receive legal and real estate services for their real estate purchase or sales transaction at no additional cost to them," she added.

If you are looking for bankruptcy attorney jobs, click here for current openings.

Hernandez Law Group, Inc


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