Making Sure Your Bankruptcy Plan Isn’t Too Good To Be True

When you find the right bankruptcy plan, it can almost seem too good to be true. You can get creditors off your back, prevent foreclosure, gain a realistic way to pay down debts and - if you stick with it - finally find financial freedom.

So what's the problem? Sometimes bankruptcy really is too good to be true. Though it can undoubtedly be a saving grace for folks saddled with debt, it can turn in to a nightmare if you fall into the wrong hands.

We're all aware that Americans carry a lot of debt - about $8,000 on average, to be exact. And some of the less honest among us use that fact to their advantage. A recent study by the Attorney General of New York found that 80 percent of online-based bankruptcy websites were scams. These companies prey upon the desperation of the financially-troubled, take their money and leave them further in debt.

So how do you tell the good companies from the bad? Watch for red flags.

Fraudulent bankruptcy companies tend to make the same mistakes. A suspicious bankruptcy company will usually ask for money upfront. They might promise to eliminate a large percentage of your debt in a short period of time, say they'll negotiate with creditors on your behalf and tell you to sit back and let them take care of everything without educating you about the process.

At DebtStoppers, our job is to make sure we find a plan that will work for you. That's why we offer educational materials, online videos, community workshops and a one-on-one debt analysis with one of our professional bankruptcy attorneys in Atlanta - all for absolutely free. So you can do the research yourself and determine whether bankruptcy could be a better solution for you.

If you're not sure if a bankruptcy firm - or any debt relief firm - is legit, do a little investigating. Contact the Better Business Bureau at, search for online reviews and use common sense. Don't let a few bad eggs prevent you from something good - financial freedom.

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