Filing for Bankruptcy is not something to do on a good day and we must avoid getting into that situation at all costs. However, if the time does arrive when we have no other option for settling our debts, we need to protect ourselves from fraudulent companies that are plotting to take advantage of our already desperate circumstances.
Some of these will store all your personal information and use it to steal your identity in the future, i.e. after you are debt-free. This can cause a lot of legal and financial problems for you and your family, so look out for any red flags.
When you file for bankruptcy, you need to reveal all your assets, including property, business, house, cars, and all other kinds of valuable belongings. Naturally, all this information is sensitive and must not be shared with someone you do not know or cannot trust.
When you hire a professional bankruptcy lawyer, you do not have to worry about him/her double-crossing you in any way. A licensed lawyer is obligated to provide confidentiality and work for the best of your interests.
If they attempt to cause you any harm or use your information for personal gains, their license shall be revoked and they will lose the right to practice law again.
Many people turn to bankruptcy agencies in order to save attorney fees or because it seems convenient. Typically, none of the people at these agencies are real lawyers, but the majority of them truly are talented con artists.
They will make bankruptcy sound easy and effortless; although it does provide immediate relief from your creditors, it does not erase all the debt for good.
Bankruptcy is all about buying more time to reestablish financial stability and paying off debts through reasonable installments. If an agency says things that feel too good to be true, trust your instincts and escape (before they lure you into their trap).
Bankruptcy is not a quick fix and anyone who tells you so is making a fool out of you. It is more emotionally draining than filing for divorce because there’s a possibility of losing everything.
Budgeting and payment plans are no piece of cake and are likely to keep you on your toes for years to come. If a company demands upfront payment for initiating the bankruptcy process or dealing with credit card issues, consider them untrustworthy.
Some might ask for money to cover ‘administrative costs’ and creation of ‘credit report’, which are services that most authentic agencies will provide for free.
When you are filing for bankruptcy, you need to ask your trustee about the aftermath. If an agency claims that your credit report will come out unaffected or stronger, you should be suspicious.
Truth is that bankruptcy will contribute to a negative credit score for up to seven years. You can increase your score over time by improving your spending habits, but that process is tricky and sluggish.
The unauthorized agencies will make many promises they cannot keep. Their goal is to mint some money and then either flee or refuse from taking responsibility when your situation gets worse.