DEBT IN THE WATER"ZERO-DOWN " BANKRUPTCY FIRMS COST THEIR CLIENTS PLENTY

"I am an honest guy and I run an honest shop," Gordon says. "Maybe I didn't know what I was dealing with here. I'm not sure what to think."
@rule:
@body:Business continues to skyrocket at the Valley's debtor mills. Manning and Associates recently hired two new attorneys, and Hessinger and Associates is doing just fine.

But there are disquieting rumblings. Norma Hammes, a San Jose lawyer and an officer in the National Association of Consumer Bankruptcy Attorneys, recently started her own investigation into the Majors brothers and their zero-down firms.

Hammes' conclusions are to the point:
ù She wants Bankruptcy Court judges to disallow the excessive fees charged by the zero-down firms and to declare as unenforceable the 18 percent installment contracts.

ù She wants Hessinger and Associates to tell its clients that its fees are uncollectible and also to order finance companies to cease collecting money.

ù She wants Texas prosecutors to determine whether the Majors brothers can be charged criminally there.

ù She wants State Bar of Arizona officials to initiate immediate investigations of both the Manning and Hessinger firms.

"Their way of doing things is a stain on our profession," says Hammes, "and it has to end."
That sounds right to Ruthie Dennis, who just wanted that financial "fresh start" and ended up a test case.

"People misuses you when they smell the money, even lawyers who should know better," Mrs. Dennis says. "I doubt if I'll ever get anything off of the TV again.