Bankruptcy and foreclosure scams to avoid
People in financial trouble are targets. These are the patterns to watch for. Real help never asks you to sign your home over or pay before anything is done.
"Bankruptcy mills"
Offices that file high volumes of cases, take a fee, and never let you meet the lawyer. You should meet the lawyer who signs your petition and be able to ask questions.
Non-lawyer "preparers" who give advice
A bankruptcy petition preparer may only type forms. If a preparer tells you which chapter to file, what property you can keep, or takes your court filing fee, walk away.
Foreclosure-rescue filings
Someone offers to "stop the sale" by filing a bankruptcy in your name, or by adding your home to a stranger's case, while you pay them "rent". These filings are often dismissed — and a dismissed case can limit the stay the next time you need it.
"Sign the deed to us and we'll fix it"
Never sign over your deed to someone promising to save your equity or let you stay. Talk to legal aid first.
Fees before any work
Federal rules bar most mortgage-relief companies from charging you before they deliver the result they promised. Ask for everything in writing.
Fake debt collectors
Threats of arrest, demands for gift cards or wire transfers, or refusal to send anything in writing are warning signs. Ask for a validation notice.
Report a scam
Report scams to the Federal Trade Commission and the Texas Attorney General, and tell the bankruptcy court's U.S. Trustee if a filing was made in your name.
- U.S. Trustee Program — approved credit counseling agencies (Texas)Visit siteLink could not be confirmed on Sep 22, 2026
- Federal Trade Commission — ReportFraud.ftc.govVisit siteLink checked Sep 22, 2026
11 U.S.C. § 110(a)Federal law regulates people who are not lawyers and prepare bankruptcy papers for pay. They may type forms, but may not give legal advice — including which chapter to file or which property to protect. Techoclaro does neither: it explains and helps you get ready.
Quoted text“prepares for compensation a document for filing”Verified against the official source
11 U.S.C. § 521(i)(1)A rushed "emergency" filing still needs every required paper within 45 days, or the case is dismissed automatically — and a dismissed case counts against a future filing.
Quoted text“the case shall be automatically dismissed effective on the 46th day after the date of the filing of the petition”Verified against the official source