Clients have been kind enough to share with me some of the many letters and solicitations they receive from people and companies who have learned of their looming foreclosure. Actually, to be more accurate, clients tell me they are deluged with these letters. Some of these letters offer assistance and provide truthful and accurate information. Others however, are clearly designed to mislead.
Recently a co-called “US agency” (who for now will remain nameless) sent a letter to a client declaring this:
Bankruptcy stops foreclosure but you will lose your home. (Note: Only 11% of bankruptcies are successful.)
Wow. Talk about scare tactics. Needless to say, this is not true. A Chapter 13 Bankruptcy can be used to save the home from foreclosure assuming a confirmable plan can be put together. The “11%” is neither cited to any source nor supported by any facts. Such a sweeping generalization is clearly and unambiguously intended to sway people away from even considering bankruptcy as an option.
People facing foreclosure need to do their research and not rely on what one company, or a group of companies tells them. Unless a bankruptcy attorney who they have met with has told them that in no uncertain terms, bankruptcy is not an option, no one should assume that it is not. And companies who make such broad sweeping generalizations that are simply false should be avoided.
Related posts:
- When Your Mortgage Company Files Bankruptcy
- Tell Congress: It’s Now or Never
- Is Countrywide Fabricating Evidence?
- Mixed Messages
- A Call for (Productive) Bankruptcy Reform
Tags: Bankruptcy, Consumer Rights, Consumer Scams, Credit and Debt, Mortgages and Foreclosures