7 Scams to Avoid When Recovering from Bankruptcy

Any bankruptcy attorney worth their fees and weight in gold, with knowledge and experience in the field, the application, the specialized sector of the market, will tell you that the intricacies of the personal bankruptcy process, business bankruptcy or bankruptcy procedures Chapter 7 or Chapter 13 bankruptcy are nothing to mess with lightly. It’s not a cozy and welcoming world for newbies and newbies, or for those who undertake the journey and challenges alone. Not only that, it becomes more dangerous due to criminal elements that take advantage of fraud, scams and crime, to exploit, steal, lie and obtain what is not their right to ask for or take, through some scam or plan.

Bankruptcy law requires a lot of scrutiny, scruples and good discernment, especially in recovery phases, when there are many unscrupulous elements and exploits to make a quick buck, from the misfortunes, despair and anguish of those who have faltered, fallen and failed. was able to successfully avoid or avoid bankruptcy. For them, any speck or ray of hope is worth embracing, even if it means taking a chance, through thick and thin, believing in something so ridiculous that someone in different circumstances could see through it, without any difficulty, but they will. they do, they can’t or they don’t want to, they don’t care or they don’t have a choice and they are taken advantage of, lied to, stolen from and left devastated with and for yet another setback.

Utilizing the specialized services offered in the realms and arenas of the California talent pool of major league bankruptcy lawyers or Los Angeles bankruptcy professionals could cost you some out-of-pocket fees in the future when you assets are liquidated, bills are settled for quality and bankruptcy services rendered and delivered. However, it will be worth protecting you against some of the scams, fraudulent and deceptive practices out there.

Don’t be one more statistic or another, let them take advantage, sign anything until you know and check who you’re dealing with, what’s at stake, check with the Better Business Bureau. If you need and retain a qualified, licensed, and experienced attorney, knowledgeable in bankruptcy law and inside information, to handle all aspects of your filing, case, and recovery, then do so. You will not regret.

Home equity loan bankruptcy applicants and prospects are especially vulnerable, as they are forced to give up their most valuable possession and asset, their home!

Many online criminal fronts and networks, flying by night, take advantage of this ‘hidden’ market to exploit the exploitation of those desperate for a bankruptcy loan, seeking financing for cars, houses and other businesses, in the post-filing phases. of bankruptcy. and internships. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, negative scores. Then they step in, looking like the ‘heroes who save the day, at rates and terms exorbitant, getting people to sign over their life savings, pensions, equity rights, and assets, from a position of helplessness, hopelessness, despair, and despair, becoming the would-be thieves, loan sharks, and criminal wolves in sheep’s clothing that really They are just making a quick buck and taking what doesn’t legally belong to them.

One of the most common and deceptive bankruptcy form crimes out there is buying a fake, fraudulent, inaccurate, or false credit score. This is actually breaking the law and is a crime for which you can be prosecuted, so avoid this practice entirely.

If you are an unlucky candidate for bankruptcy, or have gone through the process, protect your interests and well-being by not falling victim to identity thieves, loan sharks, and unscrupulous opportunistic lenders who want to exploit your circumstances and unfortunate fate, twist of money. events and a slow and laborious recovery.

In today’s real estate markets, with all the foreclosures, some markets are especially vulnerable—think bankruptcy filings for seniors in Florida, at risk of losing their homes and life savings. After hurricane season, natural disasters were left with nothing but bad debt and no options, or those with too much credit card debt, opting to get representation in the sunny state from a reputable Florida bankruptcy lawyer. reputation, to manage all aspects of it. only to discover that they have been sold down the river, by someone posing as what they are not.

There is a lot of money to be made in the boxes and hallways of post bankruptcy recovery type markets, especially now in this recession type economy we are facing.

#1: There are bankrupt car loan schemes, after bankrupt car loan financing at exorbitant rates, that promise the world, for an arm and a leg and then some, making the real loan market auto insurance after bankruptcy is more complex than it needs to be. , for those recovering from bankruptcy, making debt relief seem even more unrealistic than ever.

#2: There are emails and spam entering your inbox (spammers), prompting you to consolidate your bills into one monthly payment without borrowing; stop all credit harassment, foreclosures, garnishments, tax liens, and garnishments; or erase your debts. They are then offered through the means of filing for bankruptcy, without the candidate or prospect being told that that is what it is. It’s a last resort, not a quick-fix strategy for everyone. Be careful, and be careful to pay special attention to all the long-term negative impact on your credit worthiness of these kinds of steps, filings, and processes. There could even be legal fees that you end up being responsible for and footing the bill. Read the fine print before you sign anything and know who you’re dealing with.

#3: Home equity loans are also exploding right now in the uncertain, recessionary, foreclosure and overextended mortgage market we find ourselves in. This leads to making some extremely gullible, desperate and an open target for criminals to take advantage of with short-term ‘creative’ financing, which only deepens the debt hole. This results in homeowners losing equity or deeds to their homes, being taken advantage of, especially true and sad, by those who face the all-too-common challenges and obstacles surrounding this financial situation. There are no real solutions, just more heartbreak, debt and ruined credit, stolen identity, and worse.

#4: Then there are the companies that offer bankruptcy credit repair services under the guise of getting your information, financial details, ruining your credit, stealing, committing crimes, and leaving you to sort out the mess and consequences. There are no quick and easy ways to clean up or erase a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax identification number, for example. All of these are fraudulent practices. Remember, if an offer sounds too good to be true, it most likely is or will be in the future.

#5: Offer solutions that are downright criminal, but don’t sound too bad. Obtaining a false identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Obtaining an Employer Identification Number (EIN) to use on your credit application instead of your Social Security number actually proposes fraudulent intent, disguised as a great way to get your life and finances, debt, and score back credit al: they forget to mention that you could go to jail in the process (since this is a crime)

#6: Bankruptcy Foreclosure Fraud Scams Taking advantage of another loophole in the system, it identified as many as five different types and rings of bankruptcy closing type scams, in the Los Angeles area. This is just one and a recent example of how opportunistic these kinds of practices can be. There are trends in the market of filing for bankruptcy to delay or defraud creditors, home lenders, without the clear intent and purpose of filing for bankruptcy and qualifying for a bankruptcy discharge or completing a payment plan.

#7: Other scams to watch out for are the ways others get you to part with what little you have, pay creditors who don’t matter (taking the money, never paying your bills). NEVER pay anyone money in advance or funds in advance. Please do not provide any personal or financial information that you do not feel 100% secure and comfortable with.

There are also exploiters and process abusers, both debtors and creditors trying to get more than their fair share under the Bankruptcy Code. Don’t get sucked in by the so-called professionals who profess and advocate maximizing asset retention in bankruptcy, hiding prior crimes, maximizing profits, while leaving town with their wealth and the precious few resources they had left, taking with him the means, the opportunity. , reputation and hope.

DON’T LET THIS HAPPEN TO YOU! Get experience on your side, be smart, cautious and use common sense when recovering from bankruptcy. It’s a long and arduous process, but there are ways you can meet the challenges head on.