Dewey & LeBoeuf filed papers seeking approval of its liquidation plan with a federal bankruptcy court on Wednesday, November 21, in the latest step in the wind-down of the law firm.

The liquidation plan, filed in U.S. Bankruptcy Court in Manhattan, comes almost six months after Dewey filed for Chapter 11 bankruptcy protection amid partner defections, soaring debt, and internal disputes over compensation.

In October, U.S. Bankruptcy Judge Martin Glenn approved a settlement between Dewey's estate and 400 of its former partners who agreed to return $71.5 million in compensation in exchange for being released from further claims. But the settlement is just the first step in recovering an estimated $500 million Dewey owes to its creditors.

If the liquidation is approved, secured lenders will have $261.9 million in allowed claims, according to the filing, and another $100 million in claims that the plan would treat as unsecured.

The secured lenders will be first in line to receive any money recovered through Dewey's accounts receivable or through the wind-down of its foreign offices. Dewey's most recent operating report lists $218.6 million in accounts receivable, though 79% of them are more than 90 days old.

The secured lenders will also receive 80% of the first $67.5 million recovered by Dewey from the partners' settlement.

The liquidation plan has a different approach for other secured creditors, who are owned money related to equipment leases and personal property. To date, those secured creditors have filed $44.5 million in claims, the disclosure statement said.

The firm is seeking a hearing on the liquidation plan on January 3, 2013 and is aiming to have a hearing on its confirmation on February 27.