Posts Tagged ‘Bad Petition Preparers’

‘We The People’ Has Got Some Problems

There’s an outfit called “We The People” that touts itself as an cost effective alternative to hiring attorneys to assist consumers with that they claim is merely “document preparation.” According to a franchise website, “[f]or the last 10 years, We The People has invited entrepreneurs to reach out to their communities by offering an efficient, affordable, and convenient alternative to the high cost of attorneys’ legal services.” Unfortunately, WTP has developed quite the reputation among consumer bankruptcy attorneys for providing substandard and grossly incompetent bankruptcy services to consumers, and in some cases, engaging in the unlawful practice of law. Thus, you can imagine my shock during a recent stroll through Boston’s City Hall Plaza when I noticed that WTP has set up shop here.

Bankruptcy courts from around the country have caught onto WTP’s practices when it provides bankruptcy services to customers. However, their customers have not been so lucky.

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Injunction Issued against Massachusetts Petition Preparer

This morning, while I was waiting for my case to be called, the US Bankruptcy Court in Boston issued a preliminary injunction against Bryon Martinez d/b/a Homestead Financial Corporation of Lynn, Massachusetts. The case is an Adversary Proceeding – a lawsuit filed in the bankruptcy court (Morse v. Martinez, Docket no. 05-1471) . The injunction prohibits him and his company from “preparing any bankruptcy documents for any person in any United States Bankruptcy Court in the District of Massachusetts …and from soliciting payment or receiving payment for providing any bankruptcy services or preparing any bankruptcy documents for any person in any [Massachusetts Bankruptcy Court].” The preliminary injunction is in effect until a full trial takes place.

According to the Complaint filed by the US Trustee, Martinez is a bankruptcy petition preparer (although not an attorney) who found his “clients” by combing through public records searching for folks who were facing foreclosure. He filed bankruptcy petitions on behalf of bankruptcy debtors, but did not disclose his status as a bankruptcy petition preparer (which is required by the US Bankruptcy Code). He would then tell his clients he would attempt to obtain refinancing of their homes, once the bankruptcy petition was filed.

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