Friday, May 20, 2011

Are Low Cost Bankruptcy Filings a Scam?

A Chapter 7 and 13 Bankruptcy Blog recently posted an article entitled The Low Cost Bankruptcy Filing Scam Revealed, which describes the two types of scams behind lawyers who offer to file bankruptcies for $300 or less. Basically, the scams involve charging the client for other services that offset the small filing cost.

In one instance, the client is charged for "debt relief" services prior to the bankruptcy which inevitably fail because the client should have been told from the start that their best options was bankruptcy. In the other instance, the client is told the cost is $300 or less, but this is only for the skeletal filing, and the attorney then charges for the other necessary schedules individually.

Fortunately, these "scam" attorneys are the exception and not the rule. Most firms are upfront about what their fees are and what those fees cover. At Kelsey & Trask, P.C. we go so far as to publish this information on our website, and provide a Fee Calculator to help you figure out exactly what your total cost will be. Also, we provide the clients with a specific list of what services this cost includes and what it does not in our Retainer Agreement. Be wary of any attorney who will not provide you with this information at the initial consult.

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