The objective of these suits is to acquire sufficient funds to fight the bank. The attorneys could expect to spend $100,000-$250,000+ to litigate this case. That means 20-50 plaintiffs. If there aren't that many in front of you, then I wouldn't go in unless the attorney plans to give you your money back if an insufficient number of plaintiffs don't join the lawsuit.
Also, the competency of the law firm matters. Just because someone has a license to practice law, doesn't mean that the lawyer is knowledgeable, experienced, and has the infrastructure in place to fight a large banking institution. You could get your ass handed to you. So, don't think this is a slam dunk. It could be a scam -- lawyer's are not unknown to commit fraud as a means of making a boatload of dough in a hurry.
A Chapter 7
bankruptcy costs around $2,500 -- though I've seen a few lawyers bringing their costs down to near $1,000. But, those are for very simple "no asset
" cases where the debtor has nothing but simple debts, no income and no surprises (student loans, fraud claims by creditors, borderline income, business interests, tax problems, etc.). Because if the lawyer has to show up in court more than once, then $1,000 is going to be a money loser for the lawyer. Re $295 -- that's impossible, because the filing fees are practically that much.
Hope this helps.