Binder & Binder, once the largest social security disability firm in the United States, filed for bankruptcy in 2014. The firm faced financial difficulties due to changes in government regulations and a decrease in claim approvals.
Binder & Binder was founded in 1975 by brothers Harry and Charles Binder. The firm specialized in Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) claims, growing to become a well-known national advocacy group for disability claimants. They were particularly recognized for their aggressive advertising campaigns, which promised to help individuals navigate the complex process of obtaining disability benefits.
However, the landscape for disability claims began to change, and the firm’s fortunes declined. The Social Security Administration (SSA) started to implement stricter regulations and oversight, which led to a decrease in the approval rates for disability claims. This regulatory shift impacted Binder & Binder’s business model, which was heavily reliant on successful claim resolutions.
Additionally, the firm was affected by the broader financial crisis and the subsequent economic downturn, which put pressure on their cash flow. The combination of reduced claim approvals and financial strain led to mounting debts. In December 2014, Binder & Binder filed for Chapter 11 bankruptcy protection, citing over $50 million in debt.
The bankruptcy filing allowed the firm to restructure its operations and debt. Despite the restructuring, the firm struggled to return to its previous levels of success. The Binder brothers eventually sold their stake in the company, and the firm’s assets were liquidated to pay creditors. The Binder & Binder name still exists, but the company has been significantly downsized and restructured, operating with a much smaller footprint in the disability advocacy market.