Scams and Bankruptcy

Bankruptcy Attorney Dayton, Oh

Scams often target people that are suffering financial hardships. Your name can be obtained from foreclosure records, bankruptcy court records, or even by lists the debt collectors use. These predators are counting on you trying to find other ways out of your debt besides filing bankruptcy.

High-Interest Loans

Some lenders will offer you loans to get you back on your feet. These loans often come with very high interest. Some people mistakenly allow these loans to be secured by their home. If you get behind on your payments, you could lose your home. Whereas, if it was an unsecured loan, you could file bankruptcy and have it wiped out. Sometimes these lenders tell you that your rates can be reduced if you continue to make the payments on time for a year. These lenders offering high interest are trying to rip you off.

Credit Repair

These agencies offer to clean up your credit record. They promise to get negative marks off of your report when you get behind in your bills. Be aware that this legally cannot be done. What these agencies do for a fee, is to bombard your creditors with letters telling them they have made a mistake on your report. If the off chance there has been a mistake, at that point, it will be removed from your report. You can also do this on your own and save yourself the fee’s credit repair agencies charge.

Loan Brokers

While some loan brokers are completely honest, others will take advantage of the commissions they receive with high rate lenders. The loan brokers that are more likely to be scamming you are the ones that advertise to people with a history of financial problems.

“No Credit, No Problem”

These lenders are counting on you believing you can not get a loan anyplace else. These lenders appear to want to help you get a loan, when in fact they are hoping to get you to sign up for high-interest rates.

Recent Bankruptcy

You will receive offers for loans just after bankruptcy. These will often be high-interest loans. These lenders know you will be unable to file Chapter 7 bankruptcy for another eight years.

If you have overwhelming debt and have questions about bankruptcy, contact a Cincinnati bankruptcy attorney today.

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