The first thing you are likely to feel after your bankruptcy discharge is relief. You are starting over with a clean slate, and you hope to begin repairing your credit soon. At the law office of Stewart, McArdle, Sorice, Whalen, Farrell, Finoli & Cavanaugh, LLC, we know that many Pennsylvania residents also feel a bit of anxiety after completing the bankruptcy process. This is no surprise – people can be vulnerable in the first few months after a bankruptcy.
It is crucial to realize that unscrupulous outfits often set their sights on people who are experiencing financial hardships or attempting to rebuild after a bankruptcy. Perhaps you are already receiving offers of “pre-approved, quick and easy” loans in the mail. You may have been targeted by credit counseling or credit repair companies that promise to clean up your credit reports and help you get approved for major loans.
FindLaw warns that many of these credit repair and counseling companies are fraudulent or offer consumers little value while charging exorbitant fees. Fortunately, it is not difficult to determine which companies may be attempting to scam you. The following red flags are common for many false services:
- Requiring full payment upfront before performing a service
- Making promises that seem too good to be true, such as instantly transforming your credit
- Being difficult or impossible to reach after you pay for services
- Performing services that you could have done on your own for free
- Advising you to create a new credit identity or to take other illegal actions to repair your credit
It is possible to restore good credit after a bankruptcy, but this takes time and careful financial planning and decisions. You can find answers to your credit and bankruptcy questions on our website.