Beware of Scams and Consider Bankruptcy

Many scammers target people facing financial problems who are searching for any possible relief. If you are not considering bankruptcy as a solution to your debt issues, you might be tempted to take other avenues that can be too good to be true – and can only worsen your financial position. People can obtain your name from debt collection lists, lawsuit or foreclosure records, and other sources. You risk being scammed if you do not have the right legal advice regarding debt relief options.

Consolidation Loans

Some lenders will offer loans that allow you to consolidate certain debts, though they often have high-interest rates and might even require you to offer your house as collateral. The loan might not be enough to consolidate all of your debts, however, so then you will have that payment to make in addition to your remaining debts. There are many shady companies that offer loans to people who are struggling when they know the loan is not in their best interests. 

Credit Repair Agencies

Some companies claim they are credit repair specialists, and they take a fee promising to improve your credit score. People who cannot afford their debts often have a low credit score, so they might be tempted to hire this type of agency. However, all these agencies can do is contest debts on your report in hopes that something might be removed from your record, and they do not really have the ability to do much else to repair your credit. You will likely pay the fee for nothing in return.

Loans for Low Credit Scores

Some people might tell you that you are a subprime borrower and that you need a special lender to be approved for anything. They post signs stating they’ll lend to anyone and that bad credit is no problem. However, these companies will charge you very high rates with unfavorable terms of repayment. They want you to believe that you do not have other options so they can profit from the interest and fees.

Bankruptcy Could be an Option for You

Instead of getting to the point where you might fall for a debt relief scam that might only make matters worse, you should discuss the possibility of filing for bankruptcy with an experienced Indiana bankruptcy attorney. Bankruptcy can provide successful debt relief for many people without the risk of making their situations worse. The longer you go without exploring your trustworthy options, the greater the chance you might be targeted by financial scammers who are definitely not on your side. 

Consult with a Northwest Indiana Bankruptcy Lawyer for More Information

Bankruptcy is not necessarily the right move for everyone, but many people benefit greatly from the bankruptcy process each year. At Whitten & Whitten, we help our clients determine whether bankruptcy is the best option, including which type of bankruptcy to file. We handle every step of the process, so please contact our office if you would like to discuss your specific situation.