What is a Bankruptcy Mill?

Bankruptcy Mills

Filing for bankruptcy can be one of the best financial decisions you ever make. In order for it to be successful, though, it’s important to work with a reputable professional who can guide you through the process and help you avoid mistakes.

A bankruptcy expert can also offer advice on whether or not bankruptcy is right for you. True bankruptcy professionals do not rush you into or encourage you to file unless doing so is the best option for you.

Unfortunately, there are people and institutions out there that push bankruptcy as an option for people that don’t need to file. These companies are often called bankruptcy mills and they make money off of encouraging as many people as possible to file, even if it’s not the right choice.

Bankruptcy Professional or Bankruptcy Mill?

Bankruptcy mills typically handle large numbers of bankruptcy cases and do so in a less-than-professional manner. Many of these companies cut corners and withhold information from clients.

Bankruptcy mills tend to have employees who are not attorneys but still handle sensitive financial issues for people who file. They rarely even have licensed bankruptcy attorneys overseeing staff, which results in inexperienced or unknowledgeable people mishandling cases and creating more financial trouble for clients. In most cases, bankruptcy mills offer to help you file for a low rate that seems too good to be true – because in most cases it is.

For more information on what you can expect to pay to file for bankruptcy, check out this information from Debt.org.

How Can You Recognize a Bankruptcy Mills?

One of the most important things you can do before filing for bankruptcy is to find support from an experienced and professional bankruptcy attorney. The time you invest in finding the right bankruptcy attorney can save you a great deal of heartache and frustration in the long run.

Taking the easy way out and working with the first, most obvious company that offers to help you file for bankruptcy can backfire, even if it seems as though they will save you money because their fees are so low.

Separating a bankruptcy mill from a qualified attorney isn’t that difficult, but it can seem challenging if you’ve never looked into the bankruptcy process before. Knowing what to look for in advance can help you avoid a mistake.

The following are potential signs of a bankruptcy mill:

Not allowing you to speak to the licensed bankruptcy attorney they claim to have on staff or not having one on staff at all
Missing critical deadlines for filing paperwork with the bankruptcy court
Submitting incomplete information to the bankruptcy court
Allowing foreclosure proceedings to move forward on your home despite having begun the bankruptcy process
Receiving notice of lawsuits filed by creditors despite having begun the bankruptcy process
Constant delays in providing you information or delays in your case in general
Denial of your bankruptcy case
Receiving notification that the fee you originally agreed to pay for filing bankruptcy has suddenly increased

It’s important to realize that there can be issues with a bankruptcy case even if you are not working with a bankruptcy mill. Occasionally, there is a delay or a bill collector is able to move forward with a lawsuit due to extenuating circumstances. But in general, if you experience one or more of these red flags, or you’ve heard other people who filed using the services of a particular company experienced any of these issues, there could be cause for concern.

If you have any reason to feel suspicious or something seems too good to be true, you should take your concerns seriously. The best thing you can do if you are thinking about filing for bankruptcy is to contact a licensed attorney with solid referrals from previous clients. For more information or to schedule an appointment with an experienced professional who can help you avoid problems, contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912)-554-3756 (Jesup, GA).