It’s an unfortunate fact that cons and frauds lie in wait to take advantage of people who are desperately seeking financial relief. If you are considering filing for bankruptcy, you owe it to yourself to be aware of scammers advertising a cheap bankruptcy. These bankruptcy scammers offering a cheap bankruptcy can leave you in a worse financial situation than you started, so beware. Protect yourself by steering clear of these cheap bankruptcy scams.
You’re behind on your mortgage, your credit cards are maxed out, and the bill collectors won’t stop calling. Your finances have been upside down for months on end, and no matter what you try, you can’t seem to dig yourself out. It feels like you’re out of options.
When you’re broke and down on your luck, the thought of paying fees to file for bankruptcy feels like adding insult to injury. Enter the “no money down” bankruptcy: a justifiably enticing option when there isn’t much money to spare.
Here’s how it works. The client signs a fee agreement and the attorney files a Chapter 13 bankruptcy case. Then, the attorney gets paid in installments later on.
When something sounds too good to be true, there’s often a shred of truth.
Some disreputable firms take advantage of your desperation by charging you more to file a zero-down bankruptcy. Although the bill isn’t due right away, a study in the Southern California Law Review revealed that debtors who opt for the “no money down” bankruptcy sometimes suffer later on: they end up paying as much as $2,000 more than they would have normally. What’s worse, these debtors are gambling with their financial futures. Their cases are dismissed 18 times more frequently than if they had filed Chapter 7.
If you do choose a zero-down bankruptcy, make sure you work with an experienced and ethical bankruptcy firm such as Benson Law Firms. Michael J. Benson’s goal is to assist and never exploit his clients, helping you achieve a brighter financial future.
Some bankruptcy firms advertise aggressively on billboards and radio ads. You might even receive flyers in the mail from them if your home is in foreclosure. They seem to process hundreds of cases a month. When you need to file bankruptcy, you want a firm with that kind of experience, right? Not so fast.
Although hiring an experienced bankruptcy attorney should be your top priority, some disreputable shops attempt to maximize profits by cutting corners, limiting how much time their attorneys spend on any given case. These are called “bankruptcy mills,” and where you might see a reduced cost upfront, bankruptcy mills are notorious for nickel-and-diming clients every step of the way.
Should you go this route, don’t expect personalized attention. Secretaries and other administrative support staff, rather than trained lawyers, may handle most of your case. You may not even meet your lawyer until you’re in the courtroom.
To cut costs, bankruptcy mills will prepare your documents with haste. They may be riddled with typos and errors—errors that could delay your court proceedings or cause your case to be dismissed entirely. Clients of bankruptcy mills can count on a significantly lower chance of having their debts discharged.
If you hire an experienced bankruptcy attorney, on the other hand, you will benefit from personalized, one-on-one attention from start to finish. Your lawyer, experienced in the details of your case, will be able to prepare your documents with care, and you are much more likely to have your debts discharged in court.
Which situation would you rather find yourself in?
How to Avoid Cheap Bankruptcy Scams: Work Directly with an Attorney
The best way to protect yourself when filing for bankruptcy is to work with a legitimate and reputable St. Louis bankruptcy attorney. When you choose Benson Law Firms to represent you in your bankruptcy case, you’ll benefit from hands-on attention throughout the process.
In addition to his experience as a licensed bankruptcy attorney, Michael J. Benson is also a Certified Public Accountant (CPA). He is uniquely positioned not only to represent you in your bankruptcy case, but also to help you repair and rebuild your finances. Allow us to walk you through your options and put your mind at ease. Schedule a free bankruptcy consultation today.