Bankruptcy can be a bad word to some people. This route may seem daunting, costly, harmful or unnecessary. If you have one of these mindsets, you may choose to look for an alternative debt relief program to get out of financial hot water.
Unfortunately, many of these options put you worse off than you were before. They prey upon financially vulnerable people to build up their bank accounts without helping you resolve your debt problem. Watch out for these signs from the Better Business Bureau that you are falling for a scam, so you can avoid losing money. Then start the bankruptcy process to get out of debt safely and effectively.
Beware of direct phone calls and other forms of aggressive contact. Invasive advertising can be a red flag of shady business practices.
Payment before receiving services
A company that demands upfront payments for its services is unlikely to follow through with its responsibilities. With your money already in its pocket, there is no incentive to perform duties. In the meantime, creditor harassment and action do not stop, and late fees continue to apply.
By law, businesses cannot take compensation until they have completed their services. Even bankruptcy lawyers will work with you to set up a payment plan.
If the promised results sound too good to be true, they probably are. For example, the company may promise to erase undesirable information from your credit history. However, certain information must remain on your credit report for years. Other false promises include guaranteeing debt forgiveness and higher credit scores. Additional behaviors to look for are advising you to apply for an employer identification number, change your identity or move forward without the protection of a legal contract.
Bankruptcy may seem scary, but experiencing a scam is more so. Dispelling many of the common myths about bankruptcy may help put you at ease.