What do I do when the law firm handling my debt consolidation files bankruptcy?

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What do I do when the law firm handling my debt consolidation files bankruptcy?

Went to consumer credit, and they assigned a law firm to us which has now filed bankruptcy. What do I do? How do I know if they paid anything out to the creditors? I have received a form to fill out for claim but do I claim all the money I paid them?

Asked on October 20, 2010 under Bankruptcy Law, Washington

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

If a law firm has been adjusting your debt and the law firm is located in your state or out of state, first check with your state's department of financial institutions to determine if they need to be licensed by that agency.  Otherwise, check with your state's bar to determine if a claim can be made through that agency (the bar) to get your money back or at least a portion of your money back.  Consider filing a complaint with your state attorney general and see if they can at least help you with an accounting or sort out what happened and what has been paid or not paid.  Next, contact consumer credit and find out if they know what occurred and what they can do to help you.


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