There are scammers everywhere. You may get those emails from a African country you’ve never heard of with too good to be true claims of millions of dollars for you just by depositing a check.
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Bankruptcy scams are, unfortunately, out there too. Previously I explained that you should watch out for bankruptcy mills and debt consolidation scams. There is another aspect the bankruptcy mills are using to bring in the would-be client.
$0 Money Down Bankruptcy Case
I’m always leery of the “no money down” claim. In this bankruptcy scam, the attorney or mill is trying to pull a fast one on the client and take advantage of the bankruptcy code.
The bankruptcy scam works like this: A potential client sees a marketing ad of $0 Money Down Bankruptcy. It’s understandable that someone who needs bankruptcy protection likely has very little money to part with so this offer is enticing. At a consultation, the potential client signs a fee agreement and the attorney files the client’s case. Afterward, the client signs other documents agreeing to pay the attorney a fee in installments during and after the bankruptcy filing. Doesn’t sound bad, does it?
The problem is that the bankruptcy attorney or bankruptcy mill is taking advantage of the client by charging a fee much greater than what the client would have paid if he paid the amount up-front to a reputable bankruptcy attorney.
Another problem: The bankruptcy attorney or bankruptcy mill doesn’t discuss with the client that their pre-filing fee agreement is discharged in the bankruptcy case and doesn’t explain the ramifications of signing the agreement AFTER the bankruptcy is filed. A client isn’t required to sign these agreements, in fact, it is in their best interest not to sign them. However, the client is scared into believing the attorney will not help them with the remainder of their case unless they sign the agreement. This type of duress is unethical.
The Right Choice?
The best option is to go with quality bankruptcy attorneys who treat the client like a person and not just some file. Although the $0 money down bankruptcy scam is enticing, be wary that you are going to be overcharged for the services and potentially not getting very good service at that. If you still think the no money down bankruptcy scam is not so bad, I’ve got an email from an African businessman to forward to you.