Should You File for Bankruptcy?

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Did you know that most of this organizations see you as the next victim????
I made the mistake of hiring this well located "firm" called World Class Home Savers, LLC in Phoenix and the person in charge is Ron Bartelt , arizona and the fact that they had a nice office told me they were stable enough to do business with the. Ok , I went down to their office seeking advice and what they had to offer , they showed me a couple papers about past modifications "they have done" and it was impressive I never tought about them being a scam, but I agreed and gave them my checking account information (big mistake) under the promise that they would only charge me the $1300.00 fee if I was approved to be modified, a couple day later one of these characters called me and told me I was pre-approved and that they will go ahead a collect 3 payments of 433.33 dlls bi weekly until the 1300 .00 balance was paid off, after the last payment cleared I called them to check on the status of my loan mod. and they said the bank was reluctant and there was nothing they could do anymore........I asked what about my pre-approval???? they said you were but they changed their mind.......what about my money I said and they told me point blank ...you did not read the contract???? it is not refundable.......(this is were it gets better) next day they were unreachable and this guy named RON was never there ever......anymore......so right away I called my bank and asked them about the process and the pre-approval....to what they said there was not such a thing you are either approved or not. and I called back the scam artists and no response........ I then called BBB and filed a complaint ......followed by a Claim to my bank for services not rendered ......happy ending/// I got my money back the same day and the scammers did not even called back......a month later I got a letter from my bank saying the refund was permanent since the merchant involved did not contest..... if you are about to do a loan mod. pay them trough your bank so you can hold them responsible, also make sure to remove them from your contact in your mortgage account if this happens.......I talked to a professional after this happened and he did the modification for free since he learned what had happened to me he told me most of this companies forget about you right away after collecting the money because after all they have bigger fish to fry which is to LURE inocent hard working people into their scam..................just BE AWARE

Eric of AZ 1:22PM November 24, 2009

In reading John C Colwell's comment here by typical standards the BK does come off after 7 years. My concern is for all the people filing the BK to save their homes from going into foreclosure and no other reason than that. I am in the Loan Modification business and have taken over 9 calls today from people that are filing BK just to stop a sale date on their approaching on their homes. It is so sad that they have to resort to this to getting no relief from their lenders. In most cases I am finding that the BK filing is taking place for all the wrong reasons or at least not for the main reasons that they have been filed in the past. People are scared right now of not having a home or actually becoming homeless.
These Bankrupties seem to be just another strategy with folks to able them to stay in their homes for several more months without making their mortgage paymenst. People are just giving up really.
I feel that people should look at some other strategies in addition to the filing of the BK. If they are not getting the results from their lenders to modify their loans then they should look to an attorney that will penetrate the legal department of their current lender and let the attorney fight for them. Our qualified Real Estate lawyer today ia having huge success with working with the lenders as people must know that the lenders do not want their homes back as badly as the borrower wants to keep them.
Althoug the BK filing may stop the sale date that may be approaching quickly, however there is alway a credit repair alternative as well out there for them at the end of this process.
I have also learned that a creditor can sell your debt in regards to credit cards to a collection co. however, it is not the third party a debitor ever signed a contract with. Once the original creditor charges off a bad debt then other collection companies come in and purchase bad debt when reality is that they have no right to the bad debt and their scare tactics are forcing people to file this BK.
Something people should not attempt to do on their own is to take the BK process or the loan modification process into their own hands. I know that our company is having huge success with our clients and keeping them in their homes with strategies only attorneys should be handling, just like the BK. People today are not thinking clearly when it comes to legal representation they need to handle these matters. If you want to keep your home and file a BK as well, then just hire the lawyers that are gualified to do the job. Credit repair is just around the corner.
I am not a lawyer and I am just here to tell people that you can hire a lawyer to do your BK however keeping your home out of the BK should be considered and a modification can be combined with a BK.
You can get a free consultation with us in one phone call on the loan modification and it apprears to me there are some great BK guys right here to talk with.
Call today 866-274-3222

Kimberlyn of CA 2:12AM May 07, 2009

I agree with Attorney Waltzer that the $400 fee quoted for the debtor in Jackson Mississippi is very low by national standards. Fees vary considerably from place to place. In addition, the fee for a chapter 7 will vary depending upon whether means-testing is involved.
Bankruptcy does not necessarily result in 7 years of bad credit either. However, credit reporting agencies do have the right to report the filing of a bankruptcy for a period of 10 years from the filing date. The negative impact of this report will lessen considerably in the years after filing. A debtor who pays his or her debts timely after bankruptcy will be surprised how quickly his or her credit will recover.
In addition, a bankruptcy discharge will result in all other debts being eliminated from one's credit report - all of which will now be noted as having been discharged in bankruptcy.
My firm, Lakelaw, represents businesses and people in bankruptcy cases in Illinois and Wisconsin. We also do a great deal of work in mortgage foreclosure defense both in bankruptcy court and state courts. I am board certified as a business bankruptcy attorney and a consumer bankruptcy lawyer by the American Board of Certification. Information is also available at www.lakelaw.com and www.lakelaw.com/bankruptcy

David Leibowitz of IL 8:33PM April 29, 2009

I agree with Atty. Waltzer on his assessment of not shopping for a BK attorney solely based upon price. It obviously is one factor to consider, but as he correctly points out, there are other equally important considerations. I note, however, that in this story, apparently the debtor filed 5 years ago, which would make the filing a pre-BARF filing. The fees quoted in the article, while low, might have been appropriate before the law changed. Under the current law, post 10/17/05, a $400 fee would be nearly unheard of.
As to the 7 year rule, I am not an expert on fair debt reporting, but I have always heard or believed that 'bad debt' could only reported on your credit report for 7 years, and then that negative report would have to come off, automatically. I believe this is the 7-years Atty. Ebert was referencing in her quote.
John C. Colwell
Attorney at Law
San Diego, CA
www.debtclinic.com
Member, Board of Directors, NACBA
www.NACBA.org

John C. Colwell of CA 11:24AM April 29, 2009

The article suggests that you can find someone to handle your case for as low as $400. This is extraordinarily low for a qualified attorney. The court filing fees and credit counseling alone cost almost $400.
Every case is different and there is even a difference according to region. You can imagine that it costs more to run an office in Chicago than it does in rural Michigan. A more realistic price-range for an acceptably good bankruptcy attorney is $1500 to $2500 (unless the case has complications).
When choosing a bankruptcy attorney, you should not look for the cheapest attorney on the block. For such an important process, you should get the best attorney possible. Make sure the attorney takes his calls. Ask whether the attorney prepares the entire bankruptcy petition and schedules or if part of the paperwork gets outsourced or done by a paralegal. A careless or uninformed attorney can turn even a simple case into a nightmare.
I am attorney David Waltzer, owner of the Law Offices of David Waltzer PC (New York and New Jersey). We do consumer bankruptcy, debt settlement and debt negotiation. I have handled thousands of cases in these areas. You can learn more about debt solutions and my firm at: WWW.WALTZERLAWGROUP.COM

David S. Waltzer, Attorney in New York and New Jersey of NY 8:01PM April 27, 2009

There are a couple things in this article that give me concern.
1- Ms. Ebert said, "bad credit typically stays with you for seven years"
I am an attorney who has been in the debt solution field for many years. THERE IS NO SUCH 7-YEAR PERIOD OF BAD CREDIT.
Bankruptcy will not prevent anyone from attaining a good credit score (even in the 700s) within three years after filing. Of course the many other factors that go into a credit score are specific to the applicant.
2- Though I do debt-settlement and debt-negotiation when appropriate, I think consumers need to be warned more strongly about these solutions even when dealing with agencies that are not "scams". Many reputable "debt settlement" agencies require the consumer to put a chunk of money down or make monthly payments for a long time. The agencies often apply much of this money to their own fees. Once the fees are paid, the consumer then has to then build up a war-chest of funds that can be used for the settlement. By the time the sought-after 40% settlements are achieved, the debts have doubled (compound interest, over limit fees, penalties, etc.). Especially when the debt settlement company’s fees are computed in, the debtor is paying about 100% of what he owed in the first place. Typically some of these debt collectors get tired of waiting and sue the debtor (wage garnishments, bank levies and real estate liens ensue) and bankruptcy is ultimately necessary anyway.
What often happens is that no settlements are ever even made, or perhaps the debt settlement company will settle some small accounts that were too small for the creditors to have ever sued on anyway (so as to give an appearance of progress). In the end, the debtor loses thousands of dollars, several years and then has to go bankrupt anyway. The debt-settlement agencies don’t mind, they got their non-refundable fees.
Most Importantly, even if debt-settlement works, unless you have access to a large sum of money, it can take many years. In that same period of time, a consumer could have filed bankruptcy, restored his credit and saved all of that money.
Though I make much more money per-case doing debt settlement than doing a bankruptcy, my conscience only lets me do debt settlement if it is absolutely necessary (i.e. bankruptcy is not a viable option). People should never invest in debt settlement before getting a second opinion from a bankruptcy attorney or other trusted advisor. Debt consolidation can also be a costly dead-end street.
I am attorney David Waltzer, owner of the Law Offices of David Waltzer PC (New York and New Jersey). We do consumer bankruptcy, debt settlement and debt negotiation. I have handled thousands of cases in these areas. You can learn more about debt solutions and my firm at: WWW.WALTZERLAWGROUP.COM

Waltzer Law Group (Attorney David S. Waltzer) of NY 7:43PM April 27, 2009