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Creditors want Jacoby & Meyers forced into chapter 7 bankruptcy.

They are asking Judge Shelley Chapman to address the matter of forcing the firm into a chapter 7 bankruptcy in order to properly deal with the issues raised by the creditors.

According to the Wall Street Journal, May 21, 2014 – creditors of Jacoby & Meyers bankruptcy firm are very unhappy because the dissolved firm is not taking appropriate actions to settle their clients claims. They are asking Judge Shelley Chapman to address the matter of forcing the firm into a chapter 7 bankruptcy  in order to properly deal with the issues raised by the creditors.

Note – Jacoby & Meyers Bankruptcy is closed, but run an Internet search and you will see referrals to other law firms..

A few months ago I received a phone call from the leads generation arm of Jacoby & Meyers. They wanted me to pay them money for specific zip codes referrals. I was not comfortable with this proposal because of several concerns, including some ethical issues. Plus, the reputation of the firm suggests they do not have my same focus on professionalism.

Jacoby & Meyers Bankruptcy was formed in June 2012 as an alliance between national consumer firm Jacoby & Meyers LLC–which lent its well-known brand name to the partnership–and the bankruptcy practice of Chicago lawyer Thomas Macey (of the Thomas Macey and Jeffrey Aleman groups).

According to the Wall Street article, “just days before Jacoby & Meyers Bankruptcy’s formation, Mr. Macey and his law partner Jeffrey Aleman were accused of ethical misconduct in a complaint filed by Illinois’s attorney discipline commission, records show. The complaint stemmed from the pair’s previous law operation, Legal Helpers Debt Resolution LLC, which offered to help connect clients to debt settlement services that promised a way to lower debts outside of bankruptcy.  The complaint alleges that Mr. Macey and Mr. Aleman collected legal fees from debt-settlement customers even though no legal advice was ever given and no lawyer even spoke to the customers before taking the money–a violation of attorney ethics rules.”

Only a year and a half later, Jacoby & Meyers Bankruptcy closed and put itself into the hands of a trust intended to liquidate the firm and repay its debts, leaving clients stranded or passing them to law firms who cannot handle the large client load (just like Jeffrey Phillips of Phillips & Associates (article “Zero down bankruptcy firms cost their clients plenty” did in Arizona).

The moral to this story: do not pay an on-line service for legal advice or for referrals to a lawyer.  It is also important to note that people can pay companies to scrub complaints from the Internet.  So, don’t assume that companies are as good as their on-line references.  Do your own due diligence and make sure to ask for referrals.  See my article on How to Hire a Lawyer.

Last note – never contract with anyone who you do not meet in person.  Do not assume that a lawyer is licensed; check them out with the state bar where they are licensed.  Here is the link to the State Bar of Arizona.

We have several videos on this site.  This is one “Five Quick Tips in How to Find a Great Attorney”

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Diane L. Drain

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

About Diane Drain:

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

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*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

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