The bankruptcy landscape has evolved significantly, driven by economic shifts and changing societal attitudes, particularly post-COVID-19.
Chad Van Horn, Founding Partner of Van Horn Law Group, shares the lessons he's learned after helping thousands of clients settle billions of dollars in debt. He explains the emotional aspect of bankruptcy claims, and what other lawyers can learn about helping clients navigate extremely difficult chapters in their life, regardless of the specific practice area.
Breaking the bankruptcy stigma
Bankruptcy, once a stigmatized topic, is becoming more accepted due to economic challenges beyond individuals’ control, such as those triggered by COVID-19. Van Horn, who is writing a book on this cultural shift, notes that businesses and individuals are increasingly viewing bankruptcy as a practical solution rather than a failure, necessitating empathetic and accessible legal services.
The student loan crisis and economic challenges
The growing student loan crisis, with over-leveraged borrowers and private loans sold to third parties, signals a potential “second wave” of financial distress. Federal loan relief offers some respite, but rising default risks underscore the need for bankruptcy firms to prepare for increased demand and provide comprehensive support.
Leveraging technology for client communication
Van Horn’s firm was built with a technology-first mindset, enhancing client communication through:
- Automated reminders: Court date notifications via calls, emails, and texts improve attendance rates.
- Digital marketing: A strong online presence captures and engages clients from the outset.
- Systemized communication: Newsletters and direct-reply emails keep clients informed.
Key insight: “Technology helps—but true improvement comes from aligning technology with the right process.”
Van Horn advises mapping client service processes before selecting tech solutions to ensure convenience, clarity, and follow-through without losing the human touch.
Personalizing client interactions
Despite automation, Van Horn emphasizes personal engagement:
- Holiday calls: Staff personally call clients for holidays like July 4th, fostering connection.
- Automated gestures: Sending Starbucks gift cards upon case discharge to celebrate milestones.
- Accessibility: Van Horn shares his personal cell number, finding most clients respect boundaries.
The goal is to create “raving fan” clients who refer others, achieved by blending automation with genuine care.
Using feedback to drive improvements
Van Horn’s firm uses surveys, “secret shoppers,” and direct feedback to refine services. For example, client input helped optimize the frequency of text reminders, ensuring effective communication without overwhelming clients.
Building a five-star reputation
With over 300 five-star Google reviews, Van Horn’s firm transforms the typically low expectations of bankruptcy clients. Strategies include:
- Holistic support: Beyond legal outcomes, offer credit rebuilding advice and third-party resources (e.g., vehicle financing).
- Proactive review requests: Directly ask for reviews to build social proof, critical in a digital-first world.
Van Horn’s tip: “Commit to actual support, not just legal outcome.”
Supporting client wellbeing
Bankruptcy clients often face significant stress and mental health challenges. Firms should provide resources, check in regularly, and connect clients to support groups. Van Horn envisions a future where “aftercare” becomes standard, addressing clients’ post-bankruptcy needs holistically.
The future post-COVID
The pandemic’s long-term effects include:
- Increased bankruptcies: Spikes in business and individual filings due to restaurant/hospitality collapses, unemployment, and commercial real estate corrections.
- Remote work and hearings: Video-based court proceedings and reduced office space needs are permanent shifts.
Firms must adapt to these changes to remain competitive and responsive to client needs.
Key takeaways for law firms
- Address the #1 complaint: “My lawyer didn’t call me back” remains the top client grievance. Consistent, multi-channel communication builds loyalty.
- Process before tech: Map service workflows before adopting technology to ensure alignment.
- Invest in relationships: Proactive touches, empathy, and over-delivering create lasting client trust.
- Embrace feedback: Use client input to iterate and improve services continuously.
In modern bankruptcy practice, technology and client-centric communication are critical for success. By combining automated tools with personal engagement, leveraging feedback, and addressing broader client needs, firms like Van Horn Law Group create loyal clients and strong reputations. As economic and technological shifts continue, proactive adoption of these strategies will set bankruptcy firms apart in a challenging landscape.
