WHAT ABOUT THOSE FIRMS THAT OFFER TO FRONT THE FILING FEE FOR CLIENTS AND ADD IT INTO THEIR CASE? WHAT’S THE CATCH?
Some new marketing offers we have seen being made from some law firms offer to front the $75.00 payment for the case so that a person can file a case without paying a dime. Sounds good right?
Well, like everything, you need to read the fine print.
You may be adding hundreds or thousands in attoreny fees costs just to save that $75.00 payment at the beginning of your case. In some cases, these “zero fee to file” attorneys that you meet with may “factor” or sell the right to collect payments from you to a third party.
For example, you may agree to pay $2500.00 to the attorney for representing you. You then agree to a payment plan of $250.00 per month for 10 months. The attorney may sell his right to collect those payments to a factoring company for $1800.00 in a lump sum.
The advantage to the attorney is that they get the money up front. The advantage to you is you is that you didn’t have to pay the $75.00 up front.
The disadvantage to you is you are paying the difference. The attorney has basically agreed to handle your case for $1800.00, so any money above that is going to the third party. And being paid by you!
The $75.00 you “saved” is costing you hundred of dollars! LOOK AT THE TOTAL COST OF YOUR CASE!!
WHAT HAPPENS IF YOU CANNOT PAY THE THIRD PARTY COMPANY THAT BOUGHT YOUR FINANCING FEE AGREEMENT?
Because this is a debt you have incurred AFTER filing, it is not wiped out by your bankruptcy. The third party may try to collect from you and use all the tactics you were trying to avoid by filing in the first place. They may call you, take money from your bank account or even sue you to collect the debt.
One reason that many people have fallen into a financial trap is because they didn’t read the fine print in credit deals. Don’t do the same thing when you are seeking to get a fresh start and discharge your debt.
Do your homework, read the fine print, and look at the TOTAL cost that you will be paying for your case.
Filing bankruptcy is an important legal matter and you don’t want to discount shop for the person who is going to be ensuring that your legal proceeding. is handled correctly. With that said however, affordable fees are always an important factor in retaining a bankruptcy attorney.
Our firm is very upfront about the total fees that our clients will pay. In fact, we even list these on our website so clients can immediately understand the costs and payment plans available. We don’t charge any attorney fees upfront for a Chapter 7 and if a client needs to they can pay $75.00 for the court filing fee of $335.00 and then pay the balance over 60 days.
So for $75.00 you can stop all creditor actions and protect yourself with bankruptcy.