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Update: Man finally receives refund from law firm selling bankruptcy services online

UPDATE: Larry Pigeon's $665 refund finally posted to his bank account.

“[I did] just a little 'o fist pump,” he said. “Alright there it is.”

Upright Law sold Larry a bankruptcy assistance package online, and connected him with a licensed attorney in Oklahoma to handle his case, but Larry decided to delay his bankruptcy filing, and services were never rendered. Then his refund never showed.

Upright Law told us the refund was always on the way. The In Your Corner team just helped expedite things.

He already paid off some of his bills, and is thinking about consolidating his debt now, rather than filing bankruptcy.

OKLAHOMA CITY - Bad luck seems to follow Larry Pigeon around.

“Hate to say it, but I'm kind of used to it,” he added. “I expect it to happen to me anymore.”

He’s had a rough go at it with his health and was desperate to file bankruptcy.

He landed on Upright Law through a quick search online.

The Chicago based law firm markets bankruptcy assistance packages, then uses local attorneys in their client's home state to handle the bankruptcy cases.

Larry set up a payment plan, but says no services were ever rendered.

He recalled, “I've never received nothing for them, and I've never sent them nothing.”

He admits he got sick, stopped making payments, and decided to delay his bankruptcy filing, but was assured a full refund within 30 days.

Upright keeps telling him they are having "delays in refund time."

One rep said, “It's usually 35 or 45 business days, but lately [the finance department’s] been working through their backlog there.”

That’s when the In Your Corner team jumped into action.

An Upright Law spokesperson told us they are the largest bankruptcy filing law firm in the country with tens of thousands of satisfied customers and Larry is just one person that experienced a slight delay.

The company's Better Business Bureau however shows dozens of more complaints filed just since January, mainly for "failing to provide a refund for services not rendered."

Last year, Upright Law was also sanctioned by Bankruptcy courts in Virginia, Alabama, and Louisiana for violations.

The company spokesman says the allegations are from 2015 and those court decisions are all under appeal.

He goes onto say the company has undergone a major overhaul.

The In Your Corner bottom line:

  • Keep your cash and legal representation local.
  • Ask plenty of questions.

“Years of practice, how much time they devote to doing bankruptcy, the types of cases they do.”

Local bankruptcy attorney Gary Hammond says it's not unusual for a bankruptcy firm or attorney to hold off on filing a client's paperwork in court, until they are paid in full.

“That's common [and] the reason [is] when someone files bankruptcy they're going to get rid of their creditors, I don't want to be one of them.”

He says what isn't common is the delay in the owed refund.

Hammond added, “If someone pays an attorney for services and the attorney does not render the services that person is entitled to the unearned fees.

Great news for Larry.

He checked his bank account Wednesday morning, and his $665 refund is all there.

He’s put his bankruptcy plans on hold, and is seriously considering consolidating his debt instead.

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