After a bankruptcy, debtors are finally “caught up” on their financial obligations, but are left with temporarily damaged credit. With a little bit of consistent work and effort, such as making timely monthly payments on a secured credit card, that credit can be restored to health. But some debtors try to fast-track this process by taking an easy shortcut: they resort to using a credit repair company. While some are legitimate, many of these companies make outrageous promises that sound too good to be true — and that’s because they are. Avoid the temptation to give in, or you could become the victim of a credit repair scam. Here are the red flags to watch out for.
Rebuilding healthy credit after Chapter 7 or Chapter 13 is a completely possible and realistic goal. Bankruptcy is not a financial death sentence, and many people with filings in their pasts are able to make major purchases like cars and real estate in the future. If you are diligent and consistently pay off your bills in full and on time, you can start to see improvements in as little as about six months.
However, some debtors lack the faith or patience to restore credit in this way. They want improved credit now, and in their frustration, they turn to a credit repair agency hoping for a drastic spike in their score.
They can hardly be blamed: these companies’ claims certainly sound very enticing. Common promises include “a new credit identity” and “removal of bankruptcy from your record,” all of which conveniently comes with a “100% guarantee.” If you take a credit repair agency at its word, it sounds like an excellent deal…
Unfortunately, this is simply a case of slick advertising — often for fraudulent companies. Here are some common red flags that you might be dealing with a scam:
If you or someone you love is considering filing for Chapter 7 or Chapter 13 in New Jersey or Pennsylvania, or if you have questions about getting started, call the law offices of Young, Marr & Associates at (609) 755 3115 in New Jersey or (215) 701 6519 in Pennsylvania. You can also contact us online. Our attorneys offer a free initial consultation, so call right away.