Free Consultation
The office is open as per the NYS Covid-19 guidelines. We are now doing both in-person and telephone consultations. Please call the office at 718-855-6840 to schedule a time to speak with one of our experienced bankruptcy attorneys.

LegalZoom Charges $699 for Help With Completing Free Government Forms

It’s understandable for New York bankruptcy lawyers to cast a wary eye at LegalZoom, the Internet-based legal services company. Most media portrayals treat it as the innovative new business that disrupts the lawyer-dinosaurs, allowing everyday Americans to obtain cheap legal services without the help of an expensive licensed professional, including drafting wills and even preparing bankruptcy papers.

The lawyers aren’t usually persuasive in their rebuttals. Attorneys in some states have argued that LegalZoom engages in UPL—unauthorized practice of law. They argue that under state law, simply checking to ensure that forms are prepared properly is work that can only be performed in a lawyer’s office, no matter how routine it appears. The response, naturally, is that the lawyers are just making excuses for charging high prices for work high-school graduates could do.

The good news for us lawyers, though, is that BuzzFeed, a publication not known for extensive investigatory reporting, ran an article detailing LegalZoom’s foray into student debt relief, specifically enrolling debtors in federal income-based repayment programs. These programs are free for debtors to enroll in, but LegalZoom is charging as much as $699 to help debtors enroll in these programs and complete the paperwork for them. The cost is similar to what shadier debt relief companies charge.

(At this point, I’ll add that my practice offers free initial consultations, which is common among bankruptcy lawyers.)

BuzzFeed didn’t stop there: Its reporter contacted LegalZoom, posing as a debtor, and went through the process. At no time was the reported told that the forms are free, contrary to LegalZoom’s assertion that his company’s representatives explicitly say otherwise. Perhaps this article will encourage it to improve its practices.

Unsurprisingly, the government and nonprofit watchdogs are not amused either. One official complained that no outside help should be necessary, and an attorney with the National Consumer Law Center described the high fees as “troubling.”

You can read the BuzzFeed article here.

Millions of Americans have enrolled in federal loan repayment programs without paying for help—and they’re growing. If you are interested, a good resource to start with is the Department of Education’s Web site. If you have private student loans or substantial non-student-loan debts as well, then talking to a bankruptcy lawyer, for free, can help you assess your options.

For answers to more questions about student loans, bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced bankruptcy attorney in Brooklyn Bruce Weiner for a free initial consultation.

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

Recent Posts

Beware Grace Periods, Debtors

Too often, debtors see grace periods offered by lenders as free benefits. “Grace” makes it sound so innocent. However, debtors who routinely rely on grace periods when making payments will find themselves facing financial difficulties that might lead to bankruptcy. The reason is that although creditors offer grace periods to debtors, they also use them

Read More »

Bankruptcy May Not Rescue You From Vicious Personal Disputes

Bankruptcy is a technical process that assumes everyone working within it is mostly rational. To the extent that it expects parties to deviate from irrational behavior, the Bankruptcy Code and its accompanying rules include incentives to keep parties in line. Creditors are usually large and impersonal, and they rarely care if their debtors file bankruptcy.

Read More »

Non-Lawyers’ Explanations of Bankruptcy May Be Wrong

Do you have financial problems? Do you tend to ask your friends for advice? Is one of your friends an experienced New York bankruptcy lawyer who will explain the process for you? Are your friends otherwise knowledgeable people? The answer to these questions may be, “Yes but you don’t know it.” Although many bankruptcy lawyers

Read More »

6 Steps to Take Before Filing Bankruptcy

Leaving your case to an experienced New York bankruptcy lawyer is not the only step on the to-do list before filing bankruptcy. There are many things debtors should do (and not do) before they file, and the more organized and mindful debtors are, the easier the process will be and the more effective the result.

Read More »

Social Security Number Not Necessary for Bankruptcy

A question that’s commonly asked about New York bankruptcy is whether a debtor needs a Social Security number to file. Debtors ask because they sometimes run across the bankruptcy form title, “Your Statement About Your Social Security Numbers” (B 121), which asks debtors to list their current and prior Social Security numbers. The new bankruptcy

Read More »

How Can a Debtor (or Creditor) Get a New Trustee?

The trustee in a New York bankruptcy case is usually not the debtor’s ally. His or her purpose is mainly to administer the bankruptcy estate or ensure the debtor’s repayment plan goes according to plan. Trustees pursue preference payments, fraudulent conveyances, and other malfeasance committed by debtors. They frequently initiate adversary proceedings against debtors. In

Read More »
Scroll to Top