I see many ads in newspaper “free bankruptcy consultation”. How do those bankruptcy trustee get paid? I want to call them and let them know that i am looking to buy houses, so if anyone ever run into people that needs to sell, contact me and i will pay him 500$
but if they get paid only when the people actually file bankruptcy, we would have a conflict of interest.
I think you’re confusing titles.
A bankruptcy trustee is someone who is appointed by the court to oversee a bankruptcy to ensure that assets are realized for maximum value and that creditors get whatever they can.
Someone who advertises for a free bankruptcy consultation is not advertising trustee services. That person is more than likely a lawyer who can help someone decide if bankruptcy is a viable option for him. The lawyer gets paid a fee for doing the paperwork and handling the process from the debtor’s point of view.
Having said that, you’re certainly free to call lawyers who work with bankruptcy candidates. I don’t think any of them will be able to accept a referral fee, however. You’d have to ask them what they can do legally if they make these referrals to you.
I know a lawyer that does a lot of corporate bankruptcies and let me tell you, he makes more money than most people I know.
i see, thanks.
i was thinking just let them know what i am doing, and they can ask their clients for permission to pass on their info, or simply pass on mine to their client. i am trying to draft a good script to use on the phone.
If you are trying to work with bankruptcy people you need to learn quite a bit about how bankruptcies work in your province/country and know exactly how assets are handled under all circumstances. You can’t just jump in willy nilly and try to buy the homes, certain things need to happen and sometimes certains can’t happen based on how it’s setup. I would advise you to do a lot of research before proceeding. This situation is not at all like a foreclosure as a foreclosure person can freely sell their home without a court’s approval, etc.
this is weird. everyone that i call from the newspaper calls them self a “bankruptcy trustee”
lol one of them advised me to call a bankruptcy lawyer instead…okay…what is going on.
Asking for freebies then asking for them to refer people to you…what are they getting in return? The bankruptcy lawyer I know charges $400+/hr…while most don’t charge those kind of rates I imagine they aren’t working for free and most likely won’t just give away a block of their time to teach you about something that doesn’t help them. And I especially wouldn’t go into it as a total newb. I would learn a bit on your own first, as much as you can…then meet when them as an educated person and ask educated questions that you can’t learn in books, not a million uneducated questions that you can answer for yourself with a little work.
And when you do meet them you need to figure out how you will compensate them for their time. Maybe you will use them for your real estate transactions. Hell I would even go so far as to not even mention the bankruptcy thing until you’ve done a few transactions with them, then mention it as a sidebar. I think if I were them I would be a little turned off if someone I don’t know came in off the street and asked for a handout like that.
ok…