Bankruptcy and Scams

: Chris Lee Law Firm

  Filed under: Economy

Scam Unfortunately, people in dire financial situations are targeted by unscrupulous companies and scams. These scammers get your name from the foreclosure records or bankruptcy court records and disturbingly by purchasing lists from debt collectors. These companies are counting on you to make bad decisions regarding your debt and credit.

Payday Loans

These high-interest loans taken out to get you through a difficult time can become a financial nightmare when you are stuck in a circle of loans and payments. Often times if you didn’t have the money to cover your debt one month, the next month will be the same situation, but now you have an additional loan to pay back. Now you take out a new loan, to pay the old loan so you don’t get penalized. It’s a trap that is hard to get out of.

Credit Repair Offers

These agencies often promise to clean up your credit record if you have negative marks on your report. These companies lie to you to get you to pay for something that isn’t much help. What they actually do is send letters to your credit reporting agencies disputing the amount. Rarely, but it can happen, the creditors will reduce or eliminate the debt if they can not prove you owe that creditor. This is something you can do yourself and do not need to pay an agency to do.

High-interest loans

Some lenders will offer you high-interest loans to rebuild your credit. These lenders are counting on your belief that you are unable to get better terms because of your damaged credit. Sometimes these lenders lie to you and tell you if you make timely payments your interest rate will be lowered at some point.

Beware of “No Credit Check” and “Bad Credit, No Credit, No Problem” offers. These will come at high interest practically guaranteeing you will fail to keep up with the payments and end up back in a too much debt situation. These lenders know that if you have received a bankruptcy discharge within the last six years, you will not be able to file again and have this debt eliminated.

If you have more questions about bankruptcy and how it can help you, contact a Dallas bankruptcy attorney.

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