BANKRUPTCY A GOLD MINE FOR LAWYERS ATTORNEY FEES TOP $1M IN 14 LAWRENCE CASES.(BUSINESS)

Byline: CLAIRE HUGHES Business writer

Albany Financial disasters can be profitable.

In the largest-ever bankruptcy filing in the Capital Region, the collapse of Albert W. Lawrence's insurance empire three years ago has so far led to payouts of more than $1 million to professional firms, from local attorneys to a Palm Beach yacht broker, according to bankruptcy court records.

And that's just the tip of the iceberg.

Many of the 14 Lawrence cases remain open, so fees for work on behalf of the debtors continue to pile up. Fees for attorneys representing creditors aren't counted in the $1 million. Because their bills are paid by their clients rather than the bankrupt estates, they don't show up in court records. And the Lawrence bankruptcy debacle has spun off cases in other courts, where fees do not have to be approved by a judge, as they must be for debtors' attorneys in bankruptcy cases.

So many local law firms have gotten a piece of the Lawrence action that, earlier this year, the court appointed a Vermont attorney as trustee for one of the larger …