Avoiding Bankruptcy-Related Scams

Bankruptcy related scams are unfortunately all too common in today’s world. There are many unscrupulous people who are in business in order to take advantage of those who are in debt and looking for a means of avoiding bankruptcy. It is important for consumers to know about and have the ability to recognize the most common bankruptcy related scams so that they may steer clear of them in their quest of avoiding bankruptcy.

The Perils of Bankruptcy Related Scams

Bankruptcy related scams are not free, and those who fall for them usually end up paying money that someone in their financial circumstances can ill afford. You should also know that innocent people who have been taken in by bankruptcy related scams often end up having to file for bankruptcy anyway. Depending on what type of scam they got caught up in, their attempts for avoiding bankruptcy may well make it more difficult to actually have a judge agree to grant them a bankruptcy petition.

What to Look For In Avoiding Bankruptcy Scams

With more than a million Americans taking the bankruptcy option each year, more and more people are taking advantage of what they believe is a good choice for their finances. Advertisements for credit counseling and credit repair are numerous, and while a lot of of these organizations are available, not all of them are legitimate. Be especially careful of dealing with any company that: 

• Asks for money before providing any type of service
• Neglects to tell the consumer about what they can do to improve their credit themselves for low or no cost.
• Makes no mention of the legal rights of the consumer
• Advises the consumer against getting directly in touch with any of the credit bureaus such as Equifax, TransUnion, and Experian
• Recommends that consumers attempt to make a new credit report for themselves by getting an EIN (Employer Identification Number) and substituting this for their Social Security Number
• Tells the consumer to dispute the information contained in their credit report 

Consult an Attorney for Best Results in Avoiding Bankruptcy

Many people feel that the last thing they need when attempting to avoid bankruptcy is an attorney’s fee. The truth is that it is often possible to have a consultation with a lawyer who specializes in bankruptcy without having to come up with any money. Some lawyers offer free consultations, and most areas have free Legal Aid. An attorney who has experience in bankruptcy proceedings can help you if you find yourself in this situation.