Home » Bankruptcy » Keep an eye out for personal bankruptcy scams

Whenever people are in trouble and feeling desperate, you can be sure to find scam artists who are eager to take advantage of them; even if the “assistance” being offered isn’t illegal, the individual or business offering it may be dubious or known for throwing their clients under the bus. If you’re facing personal bankruptcy, watch out for scams or deeply unfavorable bankruptcy services that could put you in even worse financial straits or, in some circumstances, possibly land you in jail.

Dubious loan approval assistance. If you’re in the midst of bankruptcy, you may get offers from people claiming to be able to get you approved for various loans or build your credit back quickly. They will often take a lot of money from you without giving you much of anything in return.

Free services offered at a steep price. There are people who charge you a lot of money for basic services you can actually obtain for free, such as getting a copy of your credit report. Know which services are offered for free through legitimate avenues.

Suspicious debt counseling services. Various people could offer you debt counseling and credit repair help… for a fee. Avoid them. There are some legitimate major non-profits that offer debt counseling; they won’t charge you anything though.

Debt consolidation scams. There are debt consolidation companies that try to lock you into an unsuitable plan. They make you sign a contract with nasty surprises in the fine print. You get hit with fees left and right, some of them quite sizable. Your creditors won’t necessarily work with them.

Filing scams. There are companies that offer to write up your bankruptcy paperwork and file it for you as well. Some of them engage outright in illegal activities, such as identity theft. Many others turn in paperwork riddled with errors, causing you major problems in court; these so-called ‘petition mills’ are more interested in taking money and churning out sub-standard documentation than actually helping you through the bankruptcy process.

Your best bet for avoiding a scam is to consult with a lawyer throughout your bankruptcy process and have them help you in court. Don’t hesitate to contact us to obtain our advice and services, and to discuss your concerns about the bankruptcy process.