When you are falling off a cliff financially we highly encourage you to seek the advice of a licensed and qualified bankruptcy attorney to see if bankruptcy if the right course of action for you.

Unfortunately, some people try alternative routes to bankruptcy that end up costing them more in the long run.

Credit counseling, for example, can be a method that some choose as an alternative to bankruptcy. However, there are plenty of scams going on in the credit counseling industry. Be very careful when someone asks for a lot of money in advance in return for counseling of your credit or debt situation.

Credit repair businesses have popped up onto the national scene and these often promise more than they actually deliver in terms of successful results for the consumer. For example, some credit repair businesses promise to “remove” negative items from your credit report. In truth, factual items cannot be removed.

Annually you are allowed to order your own credit report for free. If you notice an item that is inaccurate or false, you may contact the credit bureau directly. You do not need to pay a third party company to do this for you.

Refinance scams may end up hurting you more than any other item mentioned. There are some who have advised consumers to max out their home equity by refinancing a second mortgage and putting that money into dubious investments that promise high returns but fail to deliver on their promises.

Remember, if an offer sounds too good to be true it usually is.

If you are in debt and having trouble making financial ends meet, consider contacting one of our bankruptcy attorneys. Your initial consultation is FREE.

Bankruptcy Pitfalls

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