Bankruptcy Indiana

I've been warning all people who visit one of my Indiana bankruptcy law offices, as well as my bankruptcy blog readers, to watch out for predators and scams.  That goes for before, during, and after bankruptcy, and it goes for people who are not filing bankruptcy at all.  Just be careful.  People under great financial strain grasp at any offer of help, however preposterous.  Other people, under great financial strain themselves, create scams to try to raise money (other people's money, insurance company money, government money - anything to survive). 

Some popular recent scams include identity theft type and bogus fee type scams:

Calling people on their home or cell phones telling them their debit or credit card has been suspended, asking them to provide information in order to reinstate the card.
 

• Sending people a letter saying they've won a sweepstakes, asking them to send a processing fee.
• Offers to obtain certified copies of real estate property deeds
• Calls to sell extended warranties on cars (callers are not linked to the car companies).
• Calling people to offer to negotiate with their mortgage lenders for a fee, then never contacting the lender
• Credit repair scams.

As a bankruptcy attorney, I'm outraged at scams that prey on innocent people who are already struggling for financial survival. Stealing the identity of someone coping with job loss, medical bills, and foreclosure issues causes untold misery.

Realistically, though, I have to acknowledge that scamming can go both ways.  Insurance companies are very concerned, because as foreclosures become more and more frequent, some homeowners turn to arson as a way out of their financial problems, and the number of questionable fires has dramatically increased.

Authorities are reporting a growing number of fraudulent theft and loss claims.  It's apparent that at least some consumers are turning to fraud, with cars dumped in lakes, burned along roads, and even driven into canals, all in an attempt to collect insurance proceeds.

There's another form of scamming by consumers that's on the rise, according to walletpop.com - staged automobile accidents.  Besides being dishonest - and raising insurance costs for everyone - these "accidents" literally endanger the lives of innocent bystanders.

The answer to the TV commercial question , "Who Does Depression Hurt?" is "Everyone!".  It's the same for scamming, no matter which side it's coming from.  I'm always reminding people that the purpose of the bankruptcy system is to provide relief from overwhelming financial problems.  All of us who live in this country help support that safety net, and we want that protection to be available for us if the need arose. Who gets hurt by scamming? Everyone!  If predators can't help, at least they should be asking for the proper kinds of help for themselves!