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Sunday, August 17, 2008

Beware of the Bankruptcy Processing Companies

by Bankruptcy Attorney

Here's how it starts You either contact the main sales person or he contacts you. They often post this pitch of a bankruptcy hotline on craigslist or other newspapers to attract unsuspecting attorneys.

They claim there is no cost to you the attorney to be involved in this and this is a good way for you to make additional income, but here's how it goes:

1. They tell you can make money answering bankruptcy calls from calls from your state and other states (ethical implications possibly) who pay $499 to have their bankruptcy processed online.

2. Amcooperative takes $200 off the bat (for the use of their software to process the bankruptcy request), the call or online request is routed by a legal assistant who is not an Attorney who then hands it off to the first Level 1 Attorney who answers the call.

3. The level 1 attorney takes the clients information down and fills into a form and is suppose to receive $100 to paid by the level 2 Attorney once they are done.

4. Level 2 Attorney (who is supposed to be paid $100 themselves) is the one from the clients home state who goes over the forms and makes sure the client has received all the exemptions and information complies with bankruptcy filings within the state.

5. The level 2 Attorney must then pay the Level 1 and the legal Assistant who routed the calls. Not to mention if the level 2 Attorney, consults with an Consulting Attorney of Amcooperative about the forms and processing the clients bankruptcy there is potentially a fee for them as well. So you could be potentially splitting $200 bucks three or more ways.

This is a pyramid Scheme, you are better of joining a local referral list for bankruptcy and purchasing software at $200 bucks and processing bankruptcy in your area. There are way to many potential ethical violations as well as the threat of not being paid in such a situation is great.

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