Declare bankruptcy to avoid foreclosure scam.

In the declare bankruptcy to avoid foreclosure, someone contacts you and says that for a fee (this is key), he/she will show you how to avoid foreclosure by declaring bankruptcy. You may also see an ad saying something like this: "stop foreclosure with bankruptcy."

First, the person will probably charge you an exorbitant fee to do something you may be able to do yourself. Keep in mind that this is a complex legal matter, if you are going to pay for this, you might as well hire a bankruptcy attorney to do this. His/her fee is probably more reasonable and he'll be able to represent you in court when needed. In fact, it would not be legal for anyone other than a lawyer to charge more than a nominal fee for doing the paperwork.

Secondly and more importantly, bankruptcy does not stop the foreclosure process, it only delays it. When a person declares bankruptcy, the court stalls the foreclosure proceeding for a month or two until the lender petitions the court to release the property from the bankruptcy.

Finally, please note, that now not only will you have a foreclosure on your credit but also a bankruptcy.

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