You're welcome. I think the theory is "we'll file a skeleton petition
for you for free, and sign a second contract with you postpetition for
new services and fees which are nondischargeable." In the CDCA Ashcroft
case, the 341a transcript had OUST asking the debtor what services were
truly provided before signing the petition. It was a heck of a lot more
than "skeletal" services, proving the bifurcation to be a sham. (page 43
et seq of this
link
already provided below). Even the attorney in this case found that much
more work was necessary up front to provided adequate representation,
which is your point, and mine.
On 7/30/2018 1:14 PM, John Faucher
j.d.faucher@sbcglobal.net [cdcbaa] wrote:
> Hale:
> Thanks for this great summary of how the UST and others view the
> business model.
> As for the "sunny and glowing" ABI article, I point out to others that
> it's penned by the managing director of the company we're talking about.
> But even reading this article, I don't understand how I could
> interview a debtor, prepare and edit his petition, guide him toward
> credit counseling, and advise him on what the bankruptcy is going to
> mean and how it will play out for zero money down - unless I determine
> that he's a pro bono client and I just won't earn a fee from that
> work. Usually, that work is the majority of the work done in the case.
> - John
>
>
> ------------------------------------------------------------------------
> *From:* "Hale Andrew Antico
la_bk_lawyer@yahoo.com [cdcbaa]"
>
> *To:*
cdcbaa@yahoogroups.com
> *Sent:* Monday, July 30, 2018 12:56 PM
> *Subject:* Re: [cdcbaa] Fresh Start Funding and bifurcation [1 Attachment]
>
> [Attachment(s)
>
> from Hale Andrew Antico included below]
> I don't know anything about the company. I question a business model
> that leaves debtors with postdischarge debt to their own attorney (or
> assignee) for services which may or may not have truly been provided
> postpetition. In other words, "let me help you get a fresh start, but
> you'll owe me and can never escape my debt" is maybe not the most
> consumer-friendly marketing strategy, though it sure may help increase
> the number of clients. It creates a conflict where you're debtor's
> counsel and potential creditor.
> The concept isn't new: here's a 1994 newspaper article that compares
> its practitioners to fast-food restaurants with low quality.
>
https://www.phoenixnewtimes.com/news/de ... ty-6445977
>
> Kathleen Porter wrote about it disapprovingly last year where the
> synopsis says,
>
> “No money down” bankruptcy can be a distortion in the delivery of
> legal help. We suggest reforms to how attorneys collect fees from
> consumer debtors that will reduce the potential conflict between
> clients’ interests and attorneys’ interests."
>
https://scholarship.law.uci.edu/faculty ... rship/663/
>
> More recently, it goes under the much nicer name "bifurcation," a
> practice which the UST seems to not be overly happy about. See recent
> UST challenge in Maryland:
>
https://drive.google.com/file/d/0B5plYg ... sck5Z/view
> and
>
https://www.nacba.org/debtors-law-firm- ... ts-client/
> also found unethical in Utah
>
https://drive.google.com/file/d/0B7isgV ... 1mUDg/view and
> closer to home in the Central District's Ashcroft case
>
https://www.bloomberglaw.com/public/des ... 1532977812
> Bankr. C.D. Cal., 17-ap-01271
>
> For a contrary view, attached find a very sunny and glowing ABI
> article from June 2018.
>
> Bottom line: "thar be dragons"
>
> Hale
>
> On 7/30/2018 11:39 AM, John Faucher
j.d.faucher@sbcglobal.net
> [cdcbaa] wrote:
>> Hello guys:
>> I've been getting bombarded with phone calls and emails from an
>> outfit known as Fresh Start Funding. They're trying to sell me on the
>> zero-down chapter 7 bankruptcy. Here is their website:
>>
https://www.freshstartfunding.com/
>> I have not responded to any of their advances, believing that this
>> business model is just too odiferous to be involved with.
>> Is there any possible way that this doesn't violate several ethics
>> rules? Has this been shut down anyplace?
>> - John D. Faucher
>> 818/889-8080
>>
>
> --
> */Hale Andrew Antico/*
>
> (888) 54-BKLAW
>
http://www.los-angeles-bankruptcy.net
>
>
> /Vice-President, Board Member, Central Dist Consumer Bankruptcy
> Attorneys' Assn.(CDCBAA)/
> /Past President, Board Member, James T. King Bankruptcy Inn of Court/
> /Member, National Association of Consumer Bankruptcy Attorneys (NACBA)/
>
> /We are a federally designated Debt Relief Agency under the United
> States Bankruptcy Laws./
> /We assist people with finding solutions to their debt problems,
> including, where appropriate, assisting them with the filing of
> petitions for relief under the United States Bankruptcy Code./
>
> /Email isn't secure, so it's not confidential. By communicating with
> me by email, you understand that it's not confidential./
>
> /This does not constitute an electronic signature./
>
>
>
*/Hale Andrew Antico/*
(888) 54-BKLAW
http://www.los-angeles-bankruptcy.net
/Vice-President, Board Member, Central Dist Consumer Bankruptcy
Attorneys' Assn.(CDCBAA)/
/Past President, Board Member, James T. King Bankruptcy Inn of Court/
/Member, National Association of Consumer Bankruptcy Attorneys (NACBA)/
/We are a federally designated Debt Relief Agency under the United
States Bankruptcy Laws./
/We assist people with finding solutions to their debt problems,
including, where appropriate, assisting them with the filing of
petitions for relief under the United States Bankruptcy Code./
/Email isn't secure, so it's not confidential. By communicating with me
by email, you understand that it's not confidential./
/This does not constitute an electronic signature./
The post was migrated from Yahoo.