Tuesday, January 3, 2012

Bankruptcy Mills

There is an interesting article on MSN about cut-rate bankruptcy lawyers, also known as bankruptcy mills.  You can read it here:
http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/BewareCutRateBankruptcyAdvice.aspx

What constitutes a "bankruptcy mill" is in the eye of the beholder.  Filing hundreds or even thousands of bankruptcies a year doesn't make a firm or an attorney a mill in my opinion.  What does make a bankruptcy mill is when the attorney doesn't give the client the personal service the client deserves.  If the attorney is up front and says, in effect, "we'll do a bankruptcy for you for $XX, but realize that for that price you won't get return phone calls, we won't answer your questions and we won't do much more than prepare the forms and attend the meeting of creditors," the client can hardly complain.  But unless the attorney makes such a disclosure, most clients expect, and I would say, deserve personal attention.  Questions arise.  Clients expect those questions to be answered. They also expect a certain amount of "hand-holding" through what is usually a traumatic event in their lives. When an attorney ignores a client WITHOUT FIRST DISCLOSING that the bargain-basement fee the client paid doesn't entitle the client to personal attention, then that firm is a bankruptcy mill.

No comments: