We are considering filing bankruptcy but have been approached by credit counseling services company. Is this a bankruptcy scam?

There are many companies who are willing to take advantage of individuals who may be in serious debt and contemplating filing for bankruptcy.  They promise to repair your credit while charging exorbitant fees.  Some of these services are actually free, such as obtaining your credit report or finding a bankruptcy attorney.  Many bankruptcy scams purposely target people facing foreclosure.  These scam operators may promise to take care of your problems with your mortgage lender and request that you make payments directly to them.  Instead, they pocket the money for themselves and then file a bankruptcy case in your name, sometimes without your knowledge.

Protect yourself by being wary of anyone who calls themselves a “mortgage consultant” or “foreclosure service”.  Do not do business with people who advertise directly to people whose homes are listed for foreclosure.  Be aware of businesses that demand a fee up front before providing a service.

The United States bankruptcy laws are extremely complex and it’s best to consult with an experienced bankruptcy attorney before deciding what the right solution may be for your situation.