A company that earned its reputation for resolving financial issues has filed for Chapter 11 bankruptcy. The tax-resolution firm, best known for its commercials, found itself in financial trouble from several states’ attorney generals. In the bankruptcy petition filed last week in Houston, Texas, the company claimed assets of less than $50,000 and debts exceeding $1 million. The company first came under fire when it was sued by attorneys general in Minnesota and Texas for supposed deceptive trade practices. Unlike the commercials’ claims that phone calls would be answered by tax professionals, even former IRS agents, calls were instead fielded by salespeople providing false information.
People who called the company were told that for several thousands, their tax problems would be solved. The salespeople failed to provide to explain that there was a no-refund policy and that your case would not be worked on until the company was paid in full, despite the placement of a deposit. If your company is facing Chapter 11, it is important that you consult a San Antonio bankruptcy attorney as soon as possible. To enlist the services of a lawyer, contact the Malaise Law Firm and set up a case evaluation.