How to Avoid Bankruptcy Scams

Attorneys General from multiple states have sued companies throughout the country that have been running bankruptcy scams and “get out of debt quick” schemes. Seeking to avoid filing for bankruptcy, some people turn to these companies that promise to clear up credit histories or reach an agreement with creditors. Unfortunately, bankruptcy-related scams promise a lot more than they deliver. People hoping to avoid bankruptcy end up losing more money and find themselves in a worse financial position.

Legitimate bankruptcy and credit services are available from experienced attorneys and nonprofit organizations. Unlike bankruptcy scams, these resources know that the priority is helping you and not simply taking your money. If you would like to learn more about bankruptcy and how to avoid falling victim to bankruptcy scams, a Maryland bankruptcy attorney can guide you through the bankruptcy process.

Avoiding Bankruptcy Scams

The following are tips that consumers should remember when considering their financial options relating to bankruptcy:

  • Credit repair and credit counseling services should be reputable, nonprofit organizations. Be wary if services ask for money up front in order to improve your credit.
  • Check to see if you can obtain services for free before paying. Many bankruptcy scams charge money for services that people can get free, such as obtaining their own credit reports.
  • Be wary of companies offering quick fixes to home foreclosure problems. Companies advertising themselves as “mortgage consultants” may charge extensive fees up front and then ask that you deed your house to them first. They can then file for bankruptcy on the house without your knowledge.
  • Do not take advantage of any offers to obtain credit or loans if you are in the middle of a bankruptcy or just recently finished it. You will likely have to pay exorbitant fees and interest rates that cost you a great deal more in the long run.
  • Speak with a bankruptcy attorney and research claims that appear too good to be true. Companies cannot simply erase negative information from your credit history or give you a brand new start.

Before making any bankruptcy decisions, it is important to consult with an experienced bankruptcy attorney. There are strict deadlines and filing requirements in bankruptcy law. People who fail to meet deadlines or filing requirements because they followed erroneous advice may have trouble obtaining the relief they seek. Contact a Washington DC bankruptcy lawyer at the Law Firm of Kevin D. Judd to obtain accurate information on bankruptcy and getting out of debt.

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