Avoiding the “After-Bankruptcy” Scams

There would always be new lenders. On the day the consumer receive the discharge, creditors and scammers alike, will be extending a new credit line to the consumer. The reasons are simple really:

1.) The consumer’s credit record is clean; he/she does not owe anybody any amount and is on the lookout for ways to rebuild his/her life.

Enter the scammers. “If it seems too good to be true, it probably Is,” that is probably the most overused slogan in the bankruptcy business and yet some consumers still fall for it. The consumer must remember that easy or quick-fix are not the words that would describe how life is going to be like after the discharge and that there is no such thing as “protection from bankruptcy”. There is not an overnight solution to rebuilding credit and there is no guarantee that he/she might not fall into this financial nightmare again. The consumer must accept the truth that bankruptcy will remain on his/her credit report for ten years, and the only way to move on and be free is to slowly build a positive credit history, and leave all the old the bad spending habits behind.

The consumer should look at least a year or two for the situation to improve, not just a day or a fortnight.

The scammers know though how vulnerable a consumer can be after having gone through bankruptcy, so these consumers are directly targeted and offered taglines or headlines that are attractive and convincing, yet so untrue and could be harmful.

2.) Creditors like the idea of the consumer not being able to file bankruptcy after just being discharged from one (after a Chapter 7 discharge, the consumer has to wait for 6 years to file again), and that means that the consumer has no choice but to pay what he/she borrowed. Bankruptcies are not profitable for creditors.

3.) The consumer’s credit score should be up after the discharge because his/her debt to income ratio has “zero” on the debt part.