If you have ever sought a debt relief service, it is likely that you have come across the name Litigation Practice Group.
The Litigation Practice Group was a law firm that asserted its ability to aid consumers in negotiating with creditors and diminishing debt burdens.
However, around February 2024, the firm closed down its business.
Reportedly, on March 20, 2023, the Litigation Practice Group PC filed for Chapter 11 Bankruptcy.
Currently, the firm wants to convert the bankruptcy to Chapter 7.
According to Investopedia, in a Chapter 7 bankruptcy, the assets of a business are liquidated to pay its creditors, with secured debts taking precedence over unsecured debts. Whereas in a Chapter 11 bankruptcy, a company continues to operate and restructures under the supervision of a court-appointed trustee, with the goal of emerging from bankruptcy as a viable business.
In this article, we give an overview of the Litigation Practice Group, its business model, operational process, and reviews from its various clients.
In addition, we also list the advantages and disadvantages according to the reviews given by netizens.
Overview of Litigation Practice Group
The Litigation Practice Group was a law firm based in California.
Known for its credit repair services, the Litigation Practice Group specialized in offering debt settlement services for individuals grappling with unsecured debt such as credit cards, medical bills, personal loans, and payday loans.
Moreover, the firm boasted a team of attorneys and negotiators who collaborated with creditors to potentially reduce debt by up to 60%.
In addition, the firm’s major selling point was its capacity to halt collection calls, legal actions, garnishments, and judgments.
Operational Process of Litigation Practice Group
As outlined on the company’s website, the process of engaging with the Litigation Practice Group unfolded as follows:
- Initial Contact: Here one initiated contact with the company and shared pertinent details about their financial circumstances and debt.
- Eligibility Assessment: The company then evaluated a case to ascertain one’s eligibility for their program.
- Enrollment: If eligible, the company enrolled the client in their program, tailoring a monthly payment plan that aligns with their budget. Payments were to be redirected from creditors to the company.
- Fund Creation: The payments made by a client contributed to a fund established to facilitate negotiations with their creditors. The company also liaised with creditors on a client’s behalf, endeavoring to settle debt for an amount less than what is owed.
- Settlement and Closure: Upon reaching an agreement, the company used the funds to settle a client’s debt with the creditor and conclude their account. A service fee was applicable for the company’s assistance.
Exploring the Advantages and Disadvantages of Litigation Practice Group
Like all debt relief options, Litigation Practice Group presented both benefits and drawbacks.
Hence, it is crucial to weigh these aspects and leave the reader to conclude if they led to the closure of the business.
- Debt Reduction: The potential for substantial debt reduction and quicker repayment compared to minimum payments.
- Bankruptcy Avoidance: Opportunity for a client to avoid the negative impact of bankruptcy on credit scores and financial prospects.
- Creditor Communication: Possibility to cease harassing communications from creditors and collection agencies.
- Legal Protection: Potential avoidance of legal actions like lawsuits, garnishments, and judgments initiated by creditors.
- High Fees: Potential high fees for the debt services, potentially reducing savings gained from debt settlement.
- Tax Implications: Possibility of tax liability on the forgiven portion of the debt.
- Credit Score Impact: Risk of harming credit scores due to ceased payments and debt settlement below the owed amount.
- Legal Exposure: Potential legal risks if creditors decline settlements or if the company fails to negotiate on your behalf.
Evaluating Litigation Practice Group Through Client Reviews
To assess if a debt relief company is worth it, going through previous client reviews is a prudent step. Such reviews are available on platforms like Glassdoor, Yelp, and Indeed.
Therefore, below is a sample of positive and negative reviews about the Litigation Practice Group from these sources:
- “An environment highly conducive to effectiveness.” – Former Attorney on Glassdoor.
- “I experienced great pay, with case managers making $25/hr. The flexibility of shifts, sick pay, and paid holidays were offered. My co-workers were remarkable. Diligence could lead to career advancement. Casual dress code. Easy provision for emergencies.” – Former Case Manager on Glassdoor.
- “My interaction with Litigation Practice Group was notably satisfactory. They efficiently negotiated my debt down to less than half of the original sum. Their conduct was professional, courteous, and responsive. They maintained me updated on case progress and addressed all my inquiries. I would wholeheartedly recommend their services to individuals requiring debt assistance.” – Client on Yelp.
- “Regular deception of clients. Management’s indifference to clients’ concerns, including garnishments, judgments, overcharging, and three years without results. We were treated as scapegoats. The prevalence of favoritism was evident.” – Former Case Manager on Glassdoor.
- “The executive insists on being addressed as ‘general’. If she holds a bias against you, you’ll face mistreatment and unwarranted scrutiny from management, potentially resulting in resignation or dismissal. HR displayed favoritism and engaged in gossip with management. Both management and executives exhibited unethical behavior. The executive would berate employees for minor errors.” – Former Department Manager on Glassdoor.
- “Caution: AVOID! RUN! This is hands down the most dreadful company I’ve dealt with. A complete scam! I am actively pursuing legal action against them (and if anyone is assembling a class action lawsuit, count me in!). Numerous unauthorized withdrawals from my bank account! Connecting with them took weeks or months. Their helpline was often inaccessible. Emails, calls, and even their portal went unanswered. They’re fraudulent! Just check BBB! A staggering 358 complaints in the past year, 533 in three years. Their support emails are all bouncing back as undeliverable and blocked.” – Client on Yelp.
Litigation Practice Group was a company dedicated to debt settlement.
The company boasted its ability to aid consumers in negotiating with creditors.
Nonetheless, before committing to future firms that operate like Litigation Practice Group one should conduct due diligence.
The process of due diligence involves researching and reviewing feedback from clients.
In addition, one should also balance the pros and cons of their program alongside alternative debt relief options is crucial.
It is necessary to remember that debt settlement does not suit everyone.
Therefore, one should always seek advice from financial experts before making decisions regarding debt.