Naugles is just one of several bankruptcy prepares drawing the ire of bankruptcy judges in the Eastern District of Wisconsin, who are charging clients to create bankruptcy petitions, many of whom claim they aren’t getting anything out of their services.
The real problem, according to Bankruptcy Judge Margaret Dee McGarity, local and online companies are often botching bankruptcy filings and charge fees much greater than those allowed in regular bankruptcy courts.
Unfortunately, many of these companies target the poor and vulnerable, who don’t really know what they’re doing when it comes to bankruptcy, making it easy for these petition companies to gain clients.
Since 2012 when the bankruptcy judges started cracking down on these companies, only about a half a dozen preparers have paid back even a little bit amount back to their clients, and the U.S. attorney’s office have yet to bring any charges against the preparers.
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