Zero down bankruptcy sounds like a dream. Pay nothing and get a fresh start. Of course you can’t afford bankruptcy, you’re broke! There are no upfront fees, except for filing fees, and you get to start over. It seems incredible, and almost too good to be true. In fact, in many cases it is too good to be true.
To put it simply, zero down bankruptcy is like choosing the fast-food of bankruptcy attorneys. You get in, you get out, and it seems like a great deal. However, these attorneys are fast talkers, promising so many things before shoving you off to an assistant to review all of your details and financial situation. They then get their clients to sign contracts promising the firms hundreds of dollars a month in attorney fees, it’s just not due, yet. Rather than helping their clients change their financial situation, they trap them into paying extensive attorney fees.
People who go through zero down firms normally end up paying two or three times more in attorney fees than those who pay fees up front. On average, zero-down firms charge $1,800-$2,800. They might even take postdated check from people in order to ensure their payments.
They also may only have ten or twenty minutes with an actual attorney, before being sent off to speak to their assistants who may or may not have the training and information to actually assist their clients. In fact, some firms even give inaccurate information to people just to get their business. At the actual hearing, they are sent with an attorney they have never met who is supposed to represent them, but who may be reading their file for the first time that day.
You can qualify for a zero-down bankruptcy, just be careful not to be scammed by zero-down firms. Do your research, and shop around. Don’t be seduced by the first flashy zero-down lawyer that crosses your path. Understand what you are getting yourself into before you sign any contracts.