Potential bankruptcy clients may have limited funds. For legal representation, they should pay those moneys to a law firm they feel comfortable with. Representation is not a one-size-fits-all prospect. A large firm with big staff, overhead and fees may provide the type of anonymity some clients seek. Other clients may prefer a small, personal environment with small overhead and small fees.

Let's illustrate:

Debtor 1, a potential candidate for bankruptcy visits a large law firm. She receives advice from a law firm representative with a fictitious bankruptcy-related title who says, “You’re definitely a candidate for chapter 7. We can deduct installments every two weeks from your debit card.”

Debtor 2, a potential candidate for bankruptcy receives advice from a licensed attorney, who completed four years of undergraduate studies, three years of law school and passed the 3-day California State Bar exam, meets continuing legal education requirements, and made an oath before a judicial official to uphold the law as an officer of the court and abide by the strict ethical guidelines of the State: “ I believe you’re a candidate for a chapter 7. However, here are some potential pitfalls that you should be aware of, however small the chances are...."

The big firm salesman may have no certification or formal legal education. Should you pay the same or more for his opinion than you'd pay to hear it from an attorney? In addition, the term "paralegal" if that applies, is loosely used. There is no strict/uniform certification for paralegals and they are not licensed to practice law. Should you pay the same or more for non-licensed opinion than you'd pay to hear it from an attorney?

And here's an analogy:

Patient 1 receives advice from a nurse: “I believe your mole may be cancerous. You should watch it for any changes.”

Patient 2 receives advice from a medical doctor, a licensed dermatologist, who completed 4 years of medical school and 5 years of residency working under the supervision of an attending physician. “I believe your mole may be cancerous. You should watch it for any changes. Here is what you'd be looking for....”

It could very well be that the nurse knows what she’s talking about. Nurses have formal training and must meet strict certification requirements. Still, would you pay the same fee to hear the above from a nurse as you’d pay to hear it from a doctor?

This is a commentary on the nature of bankruptcy representation. While debtors pay substantial attorney fees to big firms, I find they do not always realize the opinion they receive is not from an attorney. Large firms provide limited direct attorney-client contact, though their fees still reflect attorney hourly rates.